TSX May Start Higher on Upbeat Earnings, But Weak Oil Could Limit Gains
Canada’s benchmark index looked set to open higher on Tuesday, as investors applaud upbea t earnings reports from big players such as WestJet (WJA.TO) and Domtar (UFS.TO). Declining oil prices , however, could put a cap on gains.
WestJet Airlines said Tuesday it achieved net earnings of $29.2 million, or $0.26 per fully diluted share in the fourth quarter of 2018. This result easily beat forecasts for this quarter of around $0.14. Domtar, on the other hand, had one of its best quarters in several years, with net earnings of US$87 million ($1.38 per share) for the fourth quarter of 2018 compared to a net loss of $386 million ($6.16 per share) for the fourth quarter of 2017.
Meanwhile, the drop in oil prices came as the US dollar rose for the eighth-straight session, prompting some profit taking. However the downside is limited by a bullish supply picture, with OPEC and Russia lowering production while US sanctions on Venezuela have curtailed already weakened exports from the troubled country. Conversely, gold edged higher despite a rising dollar in weak trading due to the Chinese Lunar new year holiday.
The TSX rose 96 points on Monday, with healthcare stocks leading the advancers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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