TSX Recovers After Weak Start, Ends Modestly Higher

(RTTNews) - The Canadian stock market started off on a weak note Tuesday morning, and after gradually regaining ground to break into positive territory, kept moving higher to eventually end the session with modest gains.

Reports showing a surge in coronavirus cases across the world offset positive news on the vaccine front and prompted investors to take some profits early on in the session.

However, a strong comeback by energy and financial stocks helped lift the market to a positive close. Many stocks from real estate, technology and healthcare sections posted notable gains, while materials shares were weak.

The benchmark S&P/TSX Composite Index, which slid more than 120 points to 16,768.85 in early trades, ended the day with a gain of 58.25 points or 0.34% at 16,948.06.

On Monday, the index ended with a gain of 214.17 points or 1.28% at 16,889.91, the day's high. Last week, it had gained 2.4%.

Among the most actively traded frontline stocks, Aphria Inc. (APHA.TO), Cenovus Energy (CVE.TO), Husky Energy (HSE.TO), Aurora Cannabis (ACB.TO), Air Canada (AC.TO) and Enbridge Inc. (ENB.TO) gained 2.3 to 4.3%.

Suncor Energy (SU.TO), Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Canadian Imperial Bank of Commerce (CM.TO) and Bank of Montreal (BMO.TO) gained 1.3 to 1.75%.

CAE Inc. (CAE.TO) declined 6.4%. Atco (ACO.Y.TO), Pan American Silver Corp (PAAS.TO) and Kirkland Lake Gold (KL.TO) lost 4.5%, 2.9% and 2.8%, respectively. Agnico Eagle Mines (AEM.TO) ended 1.85% down.

In economic news, housing starts in Canada rose 3% over a month earlier to 214,875 units in October of 2020, missing market expectations of 222,000 units, according to Canada Mortgage and Housing Corporation (CMHC).

According to data released by Statistics Canada, wholesale sales in the country increased 0.9% over a month earlier in September, following a 0.3% increase in August.