Home Stock & Shares Crude Rally May Clinch Top Stock Market Status for Canada in this year

Crude Rally May Clinch Top Stock Market Status for Canada in this year

by Jonathan Adams

Gold’s best run since 2010 pushed Canadian equities to the top spot among developed-market stocks this year. Fifty dollar crude will give them an opportunity to stay there.

That’s the view of strategists who follow the nation’s resource-heavy stock market. They expect energy producers will rally into the end of the year as the most expensive crude in 15 months delivers a surge in earnings. The group will take over the baton from the S&P/TSX Materials Index that rallied as much as 65 per cent this year before fading in the third quarter.

A year after commodities producers dragged the S&P/TSX Composite Index to its worst result since the financial crisis; companies that mine metals and produce oil and gas have fuelled a 14 per cent surge in the benchmark for Canadian equity that’s left it the best performer among 24 developed markets tracked by Bloomberg. With crude trading above $50 (£40.85) a barrel for the first time in 18 months, analysts see energy producers poised to deliver a five-fold profit increase in 2017 that will propel share gains.

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