- June 2, 2021
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The Canadian market rose sharply on Tuesday and its benchmark S&P/TSX Composite Index breezed past the coveted 20,000 mark for the first ever time, as shares from across various sectors climbed higher on optimism about economic recovery.
The mood in the market was quite bullish amid an acceleration in vaccination drive, reports showing a decline in new coronavirus cases in the U.S. and Europe, and the gradual re-opening of businesses in several parts across the world.
Energy stocks rallied, tracking higher crude oil prices. Consumer discretionary, materials and information technology shares were the other prominent gainers in the session. Healthcare stocks were a bit subdued, while several stocks from financial and industrials sections posted notable gains.
The benchmark S&P/TSX Composite Index ended with an impressive gain of 245.02 points or 1.24% at 19,976.02, nearly 50 points down from a new all-time high of 20,022.13.
Suncor Energy (SU.TO) climbed 5.3%. Canadian Natural Resources (CNQ.TO) surged up 3.7% and Enbridge Inc (ENB.TO) gained 1.6%.
Canadian Imperial Bank of Commerce (CM.TO) gained 2.2%. Bank of Montreal (BMO.TO) and Royal Bank of Canada (RY.TO) gained 1.4% and 1.3%, respectively.
BlackBerry (BB.TO) soared 12.3%. Crescent Point Energy (CPG.TO), Cenovus Energy (CVE.TO), Whitecap Resources (WCP.TO), Barrick Gold Corporation (ABX.TO) and Imperial Oil (IMO.TO) gained 2 to 6.5%.
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.