Canada’s main stock index will add to its rally this year and hit a record high in 2024 as the Bank of Canada turns less hawkish and China’s reopening boosts demand for commodities, a Reuters poll found, but the upswing will be less than previously thought.
The median prediction of 21 portfolio managers and strategists in the Feb. 10-21 Reuters poll was for the S&P/TSX Composite Index (.GSPTSE) to advance 6.2% to 21,500 by end-2023, compared with 22,000 expected in the previous poll in November.
It was then expected to climb to 22,500 by mid-2024, moving past the record closing high it set last March of 22,087.22, but less than November’s forecast of 23,000.
The TSX index has given up some of its gains in recent days but is still up 4.5% since the start of 2023.
“Equity markets have exhibited remarkable resilience, climbing a wall of worry toward higher common stock prices,” said Brandon Michael, senior investment analyst at ABC Funds.
“The main drivers toward higher stock prices include decelerating inflation, central banks easing up on their monetary policy tightening efforts, and improving investor risk appetite.”
This report’s information was first seen on REUTERS; to read more, click this link.
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