Canada’s Toronto Stock Exchange clawed its way back from earlier declines on Tuesday, with energy stocks offsetting weakness in the financial industry after Barclays downgraded numerous bank stocks.
The Toronto Stock Exchange’s S&P/TSX composite index ended the day 0.58 higher at 20,585.73. The TSX’s financials sector, which comprises 28% of the total weighting of the index, was down 0.6%.
Among those stocks that were downgraded by Barclays were Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank, all of which declined during trading.
Helping the index to gain ground despite the banking stocks’ decline was the energy sector, which gained 0.4%, as well as industrials, up 0.5% for the day. Oil also advanced, ending the session 0.8% higher at $73.71 per barrel.
Greg Taylor, portfolio manager at Purpose Investments, viewed the Toronto Stock Exchange with high uncertainty as numerous stocks moved in opposite directions.
“It’s a market that is waiting for the next catalyst and everyone is hesitant,” Taylor explained. “The big thing in Toronto … was good strength in the energy stocks which seemed to bounce a bit with the commodity price but that was offset by some downgrades of some of the banks.”