Just four months after wallowing at the 12,000 level amid fallout from the global credit crunch, the benchmark index of the TSX closed at a record high above 15,000 Tuesday amid ongoing strength in commodity stocks.
The S&P/TSX composite index ended the trading day at 15,047 — up 63 points.
The recent run-up in the TSX — 24 per cent since late January — is largely due to the spectacular rise in the most heavily weighted industry group in the index — energy.
Since Jan. 21, when the broader index hit its most recent low, the energy group has soared by just over 50 per cent, fuelled by oil prices that marched to record highs.
The energy sub-index was 3.1 per cent higher on Tuesday, as crude oil futures kept up that record rise. The July crude contract hit a peak of $129.29 US a barrel, before pulling back to settle at $128.98 US, a gain of $2.26 US from Monday.
Rising gold prices also boosted the TSX. The gold sub-index was up 2.7 per cent on Tuesday as the bullion futures contract for June delivery rose $14.40 US to $920.20 US an ounce.
"I'm cautious," said Rob Callander, portfolio manager with Caldwell Securities. "But the momentum we've got with gold and oil, I think, is going to continue at least over the next few days," he told CBC News.
Tuesday's record came despite weakness in two of the most influential stocks in the index. Research in Motion shares closed at $137.22, down $3.09 on the day. Potash Corp. stock slid $5.59 to $201.70.
RIM shares are still up more than five-fold in the last three years while Potash shares have surged 16-fold in the same period. Both companies are now among the most valuable TSX-listed issues and each has been responsible for hundreds of points in index gains in the last several years.
The S&P/TSX composite index broke through 10,000 in June 2005.
