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S&P/TSX Composite Index Dips as Energy Sector Surges on Rising Oil Prices

Published 09/29/2023, 12:40 AM
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The S&P/TSX composite index fell 0.61% to 19,435.98 on Tuesday, with the market barely managing to maintain a gain for the year. The major sectors witnessed significant declines, with utilities dropping 3.05%, materials and information technology both falling 1.7%, and communication services decreasing by 1.4%. Financials also fell by 1.1%, and consumer staples were down 0.3%.

Contrary to the overall trend, the energy sector stood out with a rise of 1.24%. This surge was fueled by the price of West Texas Intermediate crude, which leaped to a new one-year high of over $93 a barrel. This jump in oil prices came as crude stockpiles in the United States' largest storage hub dropped to their lowest level since July 2022, according to Bloomberg. Year to date, the TSX energy sector has risen by 4.8%.

Among the top performers on Tuesday was Peyto Exploration and Development, which saw a one-day change of 8.28% and a year-to-date change of 1.95%. Analysts Jeremy McCrea and Noor Hussain from Raymond James expressed their optimism about Peyto in a research note on Tuesday, citing the Calgary-based natural gas company's improving margin strategies and its "dominant control over infrastructure." Earlier this month, Peyto announced the acquisition of Repsol (OTC:REPYY) Canada Energy Partnership from Spanish parent Repsol SA for $636 million.

Bombardier (OTC:BDRBF) Inc., the private jet maker, also experienced a positive shift with a one-day change of 4.76%, despite a year-to-date decline of 10.7%. Matthew Geudtner, an analyst from Bloomberg Intelligence, noted that an improvement in credit quality could result in a potential uplift for the Montreal-based manufacturer's credit rating.

Despite the positive performance of some stocks, the overall market saw more decliners than risers on Tuesday, with 146 stocks closing down versus 79 that closed up.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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