TSX Rises To New High As Energy, Materials Stocks Post Strong Gains

(RTTNews) - The Canadian market climbed to a new record high on Thursday, lifted by gains in energy and materials sectors. The mood remained positive amid continued optimism about interest rate cuts by the Federal Reserve, although prospects of a 50-basis point cut dimmed after data showed a bigger than expected increase in U.S. consumer price inflation in the month of September.

The benchmark S&P/TSX Composite Index, which dropped to 24,134.87 after opening with a negative gap of nearly 50 points at 24,176.40, climbed to a new high at 24,315.49 before settling at 24,302.26 with a gain of 77.36 points or 0.32%.

The Energy Capped Index climbed 2.22%. Canadian Natural Resources (CNQ.TO), MEG Energy Corp (MEG.TO), Suncor Energy (SU.TO), Whitecap Resources (WCP.TO), Tourmaline Oil Corp (TOU.TO), Parex Resources (PXT.TO), International Petroleum Corp (IPCO.TO), Imperial Oil (IMO.TO) and Arc Resources (ARX.TO) gaomed 2 to 3%.

The Materials Capped Index surged 2.14%. K92 Mining Inc (KNT.TO) soared nearly 17%. Orla Mining (OLA.TO), Torex Gold Resources (TXG.TO), Calibre Mining (CXB.TO) and Iamgold (IMG.TO) climbed 7 to 9.4%. Pan American Silver Corp (PAAS.TO), First Majestic Silver Corp (AG.TO), Aya Gold & Silver (AYA.TO), Ssr Mining (SSRM.TO), Kinross Gold (K.TO) and MAG Silver Corp (MAG.TO) were among the other major gainers in the materials sector.

Data from the Labor Department showed that its consumer price index rose by 0.2% in September, matching the increase seen in August. Economists had expected consumer prices to inch up by 0.1%.

The report also said core consumer prices, which exclude food and energy prices, climbed by 0.3% for the second consecutive month. Core prices were expected to rise by 0.2%.

Meanwhile, the Labor Department said the annual rate of consumer price growth slowed to 2.4% in September from 2.5% in August. Economists had expected the pace of price growth to slow to 2.3%. The annual rate of core consumer price growth accelerated to 3.3% in September from 3.2% in August, while economists had expected the pace of growth to remain unchanged.