Canadian Stocks Close Higher Amid Rally By Energy Stocks

(RTTNews) - Canadian stocks showed a notable move to the upside during trading on Monday, offsetting the pullback seen last Friday.

The benchmark S&P/TSX Composite Index remained firmly positive after an initial advance, closing up 108.79 points or 0.7 percent at 16,626.63.

The strength on the day after the U.S. Food and Drug Administration announced Sunday that it has issued an emergency use authorization for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients.

The FDA concluded convalescent plasma may be effective in treating COVID-19 and that the known and potential benefits of the product outweigh the known and potential risks.

Adding to the positive sentiment, a report from the Financial Times said the Trump administration is considering fast-tracking an experimental coronavirus vaccine from the U.K. for use in America ahead of the presidential election.

Energy stocks helped to lead the way higher amid optimism about the outlook for demand and two tropical storms headed toward the Gulf coast forcing a shutdown in oil production.

Reflecting the strength in the energy sector, the S&P/TSX Capped Energy Index skyrocketed by 4.3 percent on the day.

The rally by energy stocks also came amid an increase by the price of crude oil, as crude for October delivery rose $0.28 to $42.62 a barrel.

Significant strength was also visible among financial stocks, driving the S&P/TSX Capped Financial Index up by 1.7 percent.

Healthcare and consumer discretionary stocks also saw considerable strength, while technology stocks moved to the downside.