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Markets Celebrate Peaks

Baystreet.ca

Canada's main stock index held at all-time highs on Monday as energy stocks were on track to post their best day in nearly three years after an attack on Saudi Arabian oil facilities sent oil prices soaring.

The S&P/TSX Composite added 50.11 points to Friday’s all-time closing high, greeting midday Monday at 16,732.53,

The Canadian dollar was down 0.15 at 75.49 cents U.S.

The most heavily traded shares by volume were oil producers and explorers Encana, bouncing 90 cents, or 14.2%, to $7.22, Crescent Point, gaining 47 cents, or 8.3%, to $6.16, and Baytex Energy, better by 24 cents, or 12.2%, to $2.17.

The largest percentage gainer on the TSX was Dream Global REIT which jumped $2.40, or 16.9%, to $16.57, after it said funds managed by Blackstone Group would buy the Canadian firm in a $6.2-billion deal.

SNC Lavalin fell 84 cents, or 4.5%, the most on the TSX, to $20.16, followed by Western Forest, down five cents, or 3.8%, to $1.28.

On the economic front, Statistics Canada reported that foreign investors reduced their holdings of Canadian securities by $1.2 billion in July, the fourth decline in five months.

At the same time, Canadian investment in foreign securities increased to $12.5 billion, the largest investment since October 2018.

Elsewhere, the Canadian Real Estate Association reported Monday that home sales recorded via Canadian MLS Systems advanced for the sixth consecutive month in August.

Transactions are now running almost 17% above the six-year low reached in February 2019, but remain about 10% below highs reached in 2016 and 2017.

Jushi Holdings Inc. (NEO: JUSH.B) has signed a definitive agreement to acquire 80% of the economic and voting interests in Agape Total Health Care Inc, pending applicable regulatory approvals. Through the acquisition, Jushi will acquire a majority ownership in Agape, a Pennsylvania Dispensary Permittee. Agape plans on opening three retail locations in the Philadelphia region, Reading and Pottsville.

ON BAYSTREET

The TSX Venture Exchange took on 1.19 points to 590.35

Seven of the 12 Toronto subgroups were negative by noon ET, with health-care fading 1.1%, while consumer staples and communications each dropping 0.8%.

The five gainers were led by energy, bounding ahead 7.8%, while gold surged 1.3%, and real-estate acquired 0.9%

ON WALLSTREET

Stocks fell on Monday amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth.

The Dow Jones Industrials dumped 168.07 points to 27,051 – to its lows of the day. It’s looking like the first decline in nine days for the Dow, which had climbed back to within 1% from a record on Friday.

The S&P 500 fell 14.67 points to 2,992.72.

The NASDAQ Composite dipped 43.02 points to 8,131.69

The major indexes posted solid weekly gains last week and closed in on record highs set in July. Through Friday’s close, the Dow and S&P 500 were both about 0.7% below their all-time highs while the NASDAQ was nearly 2% away from its record.

General Motors shares fell 3% after the United Auto Workers union went on strike after contract talks between the two entities broke down. Higher gasoline prices could also potentially hurt sales.

Airlines JetBlue Airways and United Airlines dropped at least 2.9% each while American Airlines lost 5.5%. Devon Energy skyrocketed more than 7% before the bell while Marathon Oil jumped 9%. Dow members Exxon Mobil and Chevron rose more than 1% each.

Retailers Target and Walmart slipped more than 0.5% each. Dow members Exxon Mobil and Chevron rose more than 2% each.

Sentiment was also depressed after China’s industrial production fell to a new 17½-year low. Production rose 4.4% in August while analysts polled by Reuters expected a gain of 5.2%. The industrial-production slowdown came as China and the U.S. remain embroiled in a trade war.

Prices for the benchmark 10-year U.S. Treasury gained sharply, lowering yields to 1.83% from Friday’s 1.91%. Treasury prices and yields move in opposite directions

Oil prices vaulted $6.36 to $61.21 U.S. a barrel.

Gold prices hiked $12.30 to $1,511.80 U.S. an ounce.