A lot can be earned from the recent fourth-quarter earnings.
Canadian stocks took advantage on the latest US fourth quarter earnings as the index rallied on Friday session, backed up by the surge on bond yields and the dollar.
Banking on the Bank Sector
The TSX banked heavily on the strong performance of the bank sector on the last quarter of the previous year, when it registered a 20% since the November 8 elections, with major bank entities including the JPMorgan Chase, PNC Financial and the Bank of America contributing most gains from their reports of better-than-expected earnings.
Canada’s main benchmark finished up 79.12 points, or 0.51%, closing at 15 497.28, with eight of its ten main groups on the green zone, to end the week on a winning note and a point shy of last week’s record high.
This strong rally of the financial sector showed that investors were confident that the deregulation policy of President-elect Donald Trump would benefit major bank companies, which may result to rising interest rates.
Even the country’s financial group posted a 0.7% gain last month, with the Royal Bank of Canada logging a 0.8% gain at C$94 while the insurer Sun Life Financial Inc. added 2.2% at C$52.60.
The Bank of Nova Scotia climbed 0.54% while the Canadian Imperial Bank of Commerce settled 0.76%, driving the Canadian stocks to a steady weekly performance.
Another driver of the Friday rally was the Sobeys supermarket chain, as it swung 7.7% at C$16.72 after the company named a formed Canadian Tire Co top official as its news chief executive officer.