Energy, Cannabis Shares Lift TSX Into Positive Territory
(RTTNews) - The Canadian stock market recovered after a weak start Wednesday morning and was up marginally at noon, thanks to strong buying in healthcare and energy sections.
The weakness early on in the session was due to concerns about continued uncertainty about U.S.-China trade deal and worries about global economic slowdown.
Trade tensions escalated after U.S. President Donald Trump threatened on Tuesday that he would impose higher tariffs on Chinese goods if China failed to make a deal with the U.S.
Beijing was also upset with the U.S. senate for passing a bill certifying Hong Kong's autonomy and issuing a warning to China against violent action against protesters. Beijing has stated that it would retaliate if the U.S. does not stop interfering in China's internal affairs.
The benchmark S&P/TSX Composite Index, which declined to a low of 16,974.35 in early trades, was up 27.49 points, or 0.16%, at 17,038.89 around noon.
Energy stocks rose after crude oil prices climbed more than 3%. Encana Corp (ECA.TO) moved up 5.2%. Baytex Energy (BTE.TO), Enerplus Corp (ERF.TO), MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Vermilion Energy (VET.TO) and Tourmaline Oil Corp (TOU.TO) gained 3 to 5%.
Husky Energy (HSE.TO), PrairieSky Royalty (PSK.TO), Crescent Point Energy (CPG.TO), Enerflex (EFX.TO), Canadian Natural Resources (CNQ.TO) and Parex Resources (PXT.TO) also rose sharply.
Among cannabis shares, Canopy Growth Corp (WEED.TO) soared nearly 16%, Aurora Cannabis (ACB.TO) zoomed 15%, Aphria Inc. (APHA.TO) rallied 7% and Hexo Corp (HEXO.TO) advanced 6.2% and Cronos Group Inc. (CRON.TO) climbed 4.4%.
Kinross Gold Corp (K.TO), Bombardier Inc. (BBD.B.TO), Great Canadian Gaming Corporation (GC.TO), Firstservice Corporation (FSV.TO) and Colliers International Group (CIGI.TO) were among the notable gainers from other sectors.
Richelieu Hardware (RCH.TO), West Fraser Timber (WFT.TO), Rogers Communications (RCI.A.TO), Linamar Corporation (LNR.TO) and Fairfax Financial Holdings (FFH.TO) declined 2 to 3%.
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