06.01.2020 23:52:39
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TSX Recovers After Early Weakness, Ends On Firm Note
(RTTNews) - After a weak start and a subsequent sluggish display, the Canadian stock market gained in strength Monday afternoon to close the session on a firm note, led by gains in energy and information technology sections.
Rising tensions in the Middle East following the killing of top Iranian commander in a U.S. air raid last Thursday rendered global markets weak and hurt Canadian stocks early on in the session.
However, firm crude oil prices pushed up energy stocks and guided the market to a positive close.
The benchmark S&P/TSX Composite Index ended up 39.35 points, or 0.23%, at 17,105.47, the day's high. The index touched a low of 17,041.16 in the session.
On Friday, the index ended down 33.83 points, or 0.2%, at 17,066.12.
Cannabis shares declined sharply. Consumer discretionary stocks were mostly weak. Shares from financial, consumer staples and industrial sections ended mixed.
In the energy space, Baytex Energy (BTE.TO) ended stronger by about 7.2%. PrairieSky Royalty (PSK.TO), Seven Generations Energy (VII.TO), Crescent Point Energy (CPG.TO), Suncor Energy (SU.TO), Tourmaline Oil Corp (TOU.TO), MEG Energy (MEG.TO), Vermilion Energy (VET.TO) and Cenovus Energy (CVE.TO) gained 2.5 to 5%.
Enerplus Corp (ERF.TO), Encana Corp (ECA.TO) and Husky Energy (HSE.TO) also rose sharply.
Among information technology stocks, Absolute Software (ABT.TO) and BlackBerry (BB.TO) gained 2.85% and 3.2%, respectively. Constellation Software (CSU.TO), Shopify Inc. (SHOP.TO) and Kinaxis Inc. (KXS.TO) gained 1.6% to 2%, while Descartes Systems Group (DSG.TO) advanced 1%.
Among cannabis shares, Hexo Corp (HEXO.TO) declined more than 7%, Aurora Cannabis (ACB.TO) declined 5.4%, Cronos Group (CRON.TO) shed about 5.1% and Aphria Inc. (APHA.TO) eased 3.4%.
In the consumer discretionary section, Restaurant Brands International (QSR.TO), Great Canadian Gaming Corp (GC.TO), Mty Food Group (MTY.TO) and Martinrea International (MRE.TO) declined sharply.
On the economic front, data from Statistics Canada showed the Industrial Product Price Index in Canada dropped for a sixth straight month in November, falling 0.4% from a year earlier, after seeing a 1.4% percent fall in the previous month.
Month-on-month, the Industrial Product Price Index in Canada went up 0.1% from a month earlier in November 2019, after a revised flat reading in October and slightly below market estimates of a 0.2% gain.
According to another report from Statistics Canada, the Raw Materials Price Index rose 1.5% month-over-month in November, after a 1.9% decline in the prior month. Year-on-year, raw materials prices jumped 9.3%, after a revised 5.1% drop in October.
On Wall Street, stocks recovered from initial weakness and closed mostly higher as traders bet on hopes that the ongoing tensions in the Middle East will eventually subside without a major impact on the global economy.
The Dow edged up 0.2%, the Nasdaq advanced 0.6% and the S&P 500 climbed 0.4%.
The major European markets ended weak. Germany's DAX declined 0.7%, the U.K.'s FTSE 100 index and the French CAC 40 index ended lower by 0.6% and 0.5%, respectively.
Markets across the Asia-Pacific region ended mostly lower on Monday.
In commodities, West Texas Intermediate crude oil futures for February ended up $0.22, or about 0.4%, at $63.27 a barrel, the highest closing value in seven months for a front-month contract.
Gold futures for February ended up $16.40, or about 1.1%, at $1,568.80 an ounce, the highest settlement in nearly seven years.
Silver futures for March ended up $0.028 at $18.179 an ounce, while Copper futures for March settled at $2.7900 per pound, gaining $0.0030 for the session.
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