TSX Ends Nearly 1.5% Up As Virus Worries Fade

Canadian stocks turned in a fine performance on Tuesday, extending gains from the previous session, amid easing concerns about the impact of the Omicron variant of the coronavirus on global economic recovery.

Data showing a faster pace of economic expansion in Canada is also aiding sentiment.

Rising crude oil prices amid optimism about outlook for energy demand triggered hectic buying in the energy space and contributed substantially to market’s sharp gains.

Information technology, healthcare and consumer discretionary stocks were among the other major gainers in the session. Severla stocks from materials, industrials and financial sectors too posted strong gains.

The benchmark S&P/TSX Composite Index ended with a gain of 301.55 points or 1.45% at 21,162.65, after hitting a high of 21,227.00.

The index ended with a gain of 227.83 points or 1.1% on Monday.

The Capped Energy Index climbed 3.07%. Crescent Point Energy (CPG.TO) soared nearly 10%. Enerplus Corp (ERF.TO), Birchcliff Energy (BIR.TO), Tourmaline Oil Corp (TOU.TO), Vermilion Energy (VET.TO) and Arc Resources (ARX.TO) gained 4.7 to 6.8%. Whitecap Resources (WCP.TO), Cenovus Energy (CVE.TO), Parex Resources (PXT.TO), MEG Energy (MEG.TO) and Canadian Natural Resources (CNQ.TO) also rallied sharply.

Dye & Durham (DND.TO), up 10.7%, was the biggest gainer in the technology section. Viq Solutions (VQS.TO), Hut 8 Mining (HUT.TO), Converge Technology Solutions (CTS.TO), Docebo Inc (DCBO.TO) and Shopify Inc (SHOP.TO) advanced 5 to 9%. Haivision Systems (HAI.TO), Alithya Corp (ALYA.TO) and Nuvei Corp (NVEI.TO) also ended with strong gains.

Healthcare stocks Organigram Holdings (OGI.TO), Aurora Cannabis (ACB.TO), Well Health Technologies (WELL.TO) and Canopy Growth Corp (WEED.TO) gained 4 to 7.2%.

In the consumer discretionary section, Canada Goose Holdings (GOOS.TO) surged up nearly 8%, Brp Inc (DOO.TO) gained 6.2%, Mty Food Group (MTY.TO) climbed 4.5%, while Artizia Inc (ATZ.TO), Restaurant Brands International (QSR.TO), Gildan Activewear (GIL.TO) and Martinrea International (MRE.TO) gained 3 to 4%.

Materials shares Osisko Mining (OSK.TO), Ivanhoe Mines (IVN.TO), Hudbay Minerals (HBM.TO), Methanex Corp (MX.TO), Teck Resources (TECK.B.TO), Intertape Player (ITP.TO), Laborador Iron Ore (LIF.TO), First Quantum Minerals (FM.TO), Stelco Holdings (STLC.TO) and Silvercrest Metals (SIL.TO) ended stronger by 3 to 5.6%.

On the economic front, data released by Statistics Canada showed Canada’s trade surplus rose to C$ 2.09 billion in October from a downwardly revised C$ 1.42 billion in the previous month.

Exports jumped 6.4% to a new record high of C$ 56.2 billion, the data showed. Total imports climbed by 5.3% to an all-time high of C$ 54.1 billion.

The Richard Ivey School of Business said the Ivey Purchasing Managers Index in Canada rose to 61.2 in November, from a 3-month low of 59.3 in October, indicating a faster expansion in economic activity in the country.