TSX Rebounds on Monday Despite Inflation Concerns

The TSX ended Monday higher, rebounding from its earlier losses as gains in energy and mining shares offset the negative impact of hotter-than-expected domestic inflation data. The Canadian stock index rose by 76.40 points to close at 36,763.78.

Earnings reports from Abaxx Technologies and OceanaGold also made headlines. Abaxx's net loss widened in the second quarter, causing its shares to drop $3.01 or 11.1% to $24.15. Meanwhile, OceanaGold announced a deal to acquire Australia's Ausgold for A$776 million ($552.74 million U.S.), sending its shares up $1.42 or 3.6% to $41.16.

Information technology stocks, which helped the TSX reach a record high last week, were among the biggest laggards on Monday. Shopify's shares lost $6.86 or 3.2% to $207.49 due to concerns over inflation and the ongoing geopolitical tensions between Iran and the U.S.

The Canadian dollar gained 0.27 cents to 72.11 cents U.S. as foreign investors added $40.8 billion of Canadian securities to their holdings in June, mainly acquisitions of federal government debt securities and private corporate bonds. Meanwhile, Canadian investors acquired $35.4 billion of foreign securities, primarily US corporate shares and bonds.