The Toronto Stock Exchange has closed above 24,000 points for the first time in its 163-year history.
Canada’s benchmark stock exchange, which opened in 1861, closed at 24,033.83 points, its 26th record close of the year.
So far in 2024, the S&P/TSX Composite Index has risen 15%, driven higher largely by a rise in commodity prices.
The record close on Sept. 26 was achieved after China’s government announced stimulus plans for that country’s ailing economy, news that sent commodity prices higher.
The close above 24,000 points comes less than two months after the Toronto Stock Exchange surpassed 23,000 points for the first time shortly after the Bank of Canada cut interest rates.
Analysts expect the Toronto Stock Exchange to continue trending higher this year as prices for commodities ranging from gold and silver to orange juice and cocoa hit all-time highs.
Nearly half of the Toronto Stock Exchange’s weighting is comprised of Canada’s five largest banks and stocks linked to commodities and materials, such as mining stocks.
The share prices of Canada’s biggest banks, which tend to move in tandem with each other, have gained 14% since the Bank of Canada began lowering interest rates in June of this year.
