Biggest 1-year advance in 26 years

The benchmark index of the Toronto Stock Exchange ended a wildly volatile 2009 with a gain of more than 30 per cent on the year.

The S&P/TSX composite index gained 28 points Thursday to end the year at 11,746.11. That's up 30.7 per cent from a year ago — the best one-year gain for the TSX since 1983 — and represents a stunning 57 per cent rise from the depths of the March 9 market bottom of 7,479.

The benchmark index of the TSX has charged back from the depths of early March 2009. (CBC/Robin Rowland)

Markets in Canada and the U.S. rebounded sharply from a disastrous start to the year as investors warmed to signs that the recovering economy would boost profits. The 2009 rally followed a dismal 2008, when the global financial crisis led to a worldwide market slump. The S&P/TSX composite index lost a third of its value in 2008.

The Canadian dollar climbed almost two-fifths of a cent to end 2009 at 95.15 cents US. That's up almost 16 per cent from 82.1 cents US, where it started the year.

Oil closed up eight cents to $79.36 US a barrel — a 78-per cent gain on the year. Crude futures dipped as low as $33.98 US a barrel in early February before rebounding along with expectations of economic recovery and eventual expansion.

Dow gains 18.8%

The Dow Jones industrial average shed 120.46 points on the last trading day of 2009 to end the year at 10,428.05. That was 18.8 per cent higher than it was at the start of the year.

The S&P 500 index gained 23.5 per cent in 2009 — its largest annual increase in six years. Since the March 9 low, it has soared more than 60 per cent. The widely watched index lost 38.5 per cent in 2008.

The Nasdaq composite index lost 2,213 points to 2,269.15. Its 43.9 per cent rise in 2009 made it the best performing of the major North American stock exchange benchmarks.

Source: CBC News - Read more...