The Toronto Stock Exchange (TSE:XIU) is at an all-time high as commodity prices continue to soar.
Canada’s benchmark stock exchange closed at 24,033.83 points on September 26, marking the 26th record closing price this year and the first time it closed above 24,000 points. So far in 2024, the S&P/TSX Composite Index is up 16%, driven by commodity gains, with prices for everything from gold to orange juice at or near record levels.
The Toronto Stock Exchange’s record close came on news that the Chinese government is taking steps to stimulate the country’s struggling economy, which is expected to increase demand for goods in the country of 1.4 billion people. There is. Almost half of the Toronto Stock Exchange’s weighting is comprised of stocks related to commodities and mining.
How high will the Toronto Stock Exchange go?
The close above 24,000 points comes less than two months after the Toronto Stock Exchange surpassed 23,000 points for the first time. Analysts expect the Toronto Stock Exchange to continue its upward trend this year as commodity prices such as metals, grains and cocoa continue to rise.
The Toronto Index has also benefited from falling interest rates in recent months. In June of this year, the Bank of Canada began lowering interest rates ahead of the US Federal Reserve (Fed). The Bank of Canada has cut interest rates by a cumulative 75 basis points so far, and has indicated that further cuts are likely in the coming months as the domestic economy shows signs of slowing.
Is the iShares S&P/TSX 60 Index ETF a buy?
iShares S&P/TSX 60 Exchange Traded Fund (ETF) tracks the top 60 stocks on the Toronto Stock Exchange as measured by market capitalization and is rated a Moderate Buy among 61 Wall Street analysts. has been rated. This rating is based on 50 Buy recommendations and 11 Hold recommendations made over the past three months. The ETF currently does not have a sell rating. The average price target of CA$38.50 implies a potential upside of 5.50% from current levels.
Read more about analyst ratings for iShares S&P/TSX 60 ETF
