The Toronto Stock Exchange is expected to climb above 20,000 points by the end of the year, according to a Reuters poll. This prediction is seen as an optimistic outlook on the Canadian economy’s recovery from the coronavirus pandemic.
The poll conducted among 26 portfolio managers and strategists returned a median prediction for the S&P/TSX composite index (^GSPTSE) to climb 20,050 by the end of 2021. The forecast last February was the stock exchange will close at 19,650 by the end of the year and expected to hit 21,750 by the end of 2022.
“The cyclical upturn in the global economy will support commodity prices and translate into a strong earnings outlook for the TSX,” said Angelo Kourkafas, investment strategy analyst at Edward Jones.
Since the big board opened, this would be the first time that the Canadian financial market will reach the 20,000-mark.
The Toronto Stock Exchange reflected the effects of the quarantine restrictions due to the pandemic in March 2020, falling more than 6,000 points within a month. Since then, the stock market continued to climb, even outpacing the S&P 500 index in 2021.
Steve Palmer, chief investment officer at AlphaNorth Asset Management predicts that the “heavier weighting in resource shares could help the TSX outperform U.S. markets over the next year.”
The S&P/TSX composite index last closed at $19,564.12.
Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.