Markets

TSX Ends On Buoyant Note, Led By Gains In Energy, Materials Shares

(RTTNews) - The Canadian stock market ended on a strong note on Tuesday, as investors back in business after an extended weekend due to Civic Day holiday on Monday, went on a buying spree in energy and materials sections.

Gold's steep climb above the $2,000 an ounce mark, and crude oil's sharp uptick triggered hectic buying in the resources sections, even as worries about the impact of surging coronavirus cases continued to linger.

Several shares from healthcare, information technology, telecom and consumer discretionary sections too posted solid gains.

Data showing a notable expansion in Canada manufacturing activity in the month of July aided sentiment. The IHS Markit Canada Manufacturing PMI came in with a reading of 52.9 for July 2020, rising from 47.8 a month earlier. The reading pointed to the first expansion in factory activity in five months and the sharpest since January last year.

Also, the pace of output expansion was the fastest since September 2018 and new orders went up for the first time since February amid a recovery in sales thanks to relaxation in lockdown measures.

Utilities, financial, real estate and consumer staples stocks turned in a mixed performance, while industrial shares exhibited weakness.

The benchmark S&P/TSX Composite Index ended with a gain of 198.83 points or 1.23% at 16,368.03, almost near the day's high of 16,370.08.

The Capped Energy Index climbed about 3.7%. Enerplus Corp (ERF.TO) soared more than 9%, Crescent Point Energy (CPG.TO) and Seven Generations Energy (VII.TO) gained 7.25% and 7.1% respectively, and Arc Resources (ARX.TO) moved up 7%.

MEG Energy (MEG.TO), PrairieSky Royalty (PSK.TO), Husky Energy (HSE.TO), Whitecap Resources (WCP.TO), Imperial Oil (IMO.TO), Tourmaline Oil Corp (TOU.TO), Vermilion Energy (VET.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO) and Parex Resources (PXT.TO) moved up 3 to 6.2%.

In the materials section, Nutrien (NTR.TO) gained nearly 7%. Hudbay Minerals (HBM.TO), Silvercrest Metals (SIL.TO), Torex Gold Resources (TXG.TO), Osisko Gold (OR.TO), Silvercorp Metals (SVM.TO), First Quantum Minerals (FM.TO), Teck Resources (TECK.B.TO), Pan American Silver (PAAS.TO), B2Gold Corp (BTO.TO), Kinross Gold Corp (K.TO) and Yamana Gold (YRI.TO) gained 2.8 to 5%.

Among the gainers in the healthcare index, Cronos Group (CRON.TO) spurted 7.3%, Canopy Growth Corp (WEED.TO) advanced 5.1%, Aurora Cannabis (ACB.TO) gained 4.25% and Bausch Health Companies (BHC.TO) moved up 3.4%, while Aphria (APHA.TO) ended higher by about 1.6%.

Technology stocks Kinaxis Inc. (KXS.TO) and Shopify Inc. (SHOP.TO) gained 5.8% and 4.8%, respectively.

In commodities, West Texas Intermediate Crude oil futures for September settled at $41.70 a barrel, gaining $0.69 or about 1.7% for the session.

Gold futures for December ended up $34.70 or about 1.7% at $2,021 an ounce, and kept edging higher after the session.

Silver futures for September ended stronger by $1.611 or about 6.6% at $26.028 an ounce, while Copper futures for September settled at $2.8945 per pound, losing $0.0175 or 0.6%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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