Canadian Market Up Sharply As Resources, Technology Stocks Rally

(RTTNews) – The Canadian stock market is up sharply in positive territory on Tuesday, riding on strong gains in energy, consumer discretionary, information technology, industrials and materials shares.

The mood is quite upbeat in the market amid continued optimism about global economic recovery. A sharp surge in crude oil prices and firm bullion prices are also aiding sentiment.

The benchmark S&P/TSX Composite Index is up 259.92 or 1.32% at 19,990.96 an hour past noon. The index touched a new record high at 20,014.70.

The Capped Energy Index is up 3.25%. Tourmaline Oil Corp (TOU.TO), Prairiesky Royalty (PSK.TO), Crescent Point Energy (CPG.TO), Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), Arc Resources (ARX.TO) and Vermilion Energy (VET.TO) are up 3 to 6%.

Consumer discretionary shares Linamar Corp (LNR.TO), Martinrea International (MRE.TO) and Magna International (MG.TO) are gaining 3.75%, 3.7% and 3.1%, respectively. Canada Goose Holdings (GOOS.TO), Restaurant Brands International (QSR.TO), Dollarama Inc (DOL.TO) and Sleep Country Canada Holdings (ZZZ.TO) are up 1.7 to 2.3%.

Materials shares Methanex Corp (MX.TO) is rising more than 7%. Teck Resources (TECK.B.TO) is gaining 5% and Lithium Americas Corp (LAC.TO) is up 3.6%. Turquoise Hill Resources (TRQ.TO), MAG Silver Corp (MAG.TO), Dundee Precious Metals (DPM.TO), Silvercrest Metals (SIL.TO) and Iamgold Corp (IMG.TO) are up 2.8 to 3.3%.

Among technology stocks, BlackBerry (BB.TO) is climbing 7.2%, Shopify Inc (SHOP.TO) is up 3.5% and Tecys Inc (TCS.TO) is rising 2.75% and Constellation Software (CSU.TO) is moving up 1.7%.

In the industrials section, Westport Fuel Systems (WPRT.TO) is surging up nearly 9%. Mullen Group (MTL.TO) is up 4.75% and Gfl International (GFL.TO) is gaining 3.2%, while Finning International (FTT.TO), Boyd Group Services (BYD.TO), New Flyer Industries (NFI.TO), Westshore Terminals Investment Corp (WTE.TO) and Thomson Reuters (TRI.TO) are up 1.5 to 2.1%.

Canopy Growth Corp. (WEED.TO) reported that its fourth-quarter net loss attributable to the company was C$699.98 million or C$1.85 per share, sharply narrower than C$1.30 billion or C$3.72 per share in the prior-year quarter. The stock is down marginally.

Bank of Nova Scotia (BNS.TO) reported adjusted net income of C$2.48 billion or C$1.90 a share, in the three months ended April 30, compared with analysts’ estimates of C$1.76 a share, based on IBES data from Refinitiv.

Canadian Pacific Railway (CP.TO) shares are up 1.85%. The company announced Tuesday that more than 130 stakeholders have filed statements with the Surface Transportation Board (STB) requesting the STB reject Canadian National’s proposed use of a voting trust. The stock is down by about 0.4%.

On the economic front, data released by Statistics Canada showed Canada’s GDP expanded 1.4% in the first quarter of 2021 after growing by a downwardly revised 2.2% in the previous quarter.

GDP Growth Annualized in Canada decreased to 5.6% in the first quarter of 2021 from a revised 9.3% in the fourth quarter of 2020.

According to Markit Economics, the IHS Markit Canada Manufacturing PMI dropped to 57 in May of 2021 from 57.2 in the previous month. Still, the latest reading pointed to the 11th straight month of expansion in the country’s factory activity.