Energy, Technology Stocks Lift Canadian Market; TSX Up 1.8%

(RTTNews) – The Canadian market is firmly entrenched in positive territory Thursday afternoon with stocks from across several sectors posting handsome gains on sustained buying interest.

A positive trend in global markets amid slightly easing worries about inflation and hopes that the Fed might start easing its policy stance later this year help underpin sentiment.

Oil stocks are up sharply, buoyed up by a sharp surge in crude oil prices. Consumer discretionary, technology, financials and materials shares are the other prominent gainers.

The benchmark S&P/TSX Composite Index is up 342.06 points or about 1.8% at 19,071.72.

The Energy Capped Index is up 4.5%. Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Advantage Oil & Gas (AAV.TO), Nuvista Energy (NVA.TO), Freehold Royalties (FRU.TO) and MEG Energy (MEG.TO) are gaining 11 to 14%.

Consumer discretionary stocks Magna International (MG.TO), Linamar Corp (LNR.TO), Aritzia Inc (ATZ.TO) and Brp Inc (DOO.TO) are climbing 4.5 to 6%.

In the technology section, Hut 8 Mining Corp (HUT.TO) is soaring nearly 16%. Magnet Forensics (MAGT.TO) and Converge Technology Solutions (CTS.TO) both are gaining about 6.5%. Shopify Inc (SHOP.TO), Celestica Inc (CLS.TO), BlackBerry (BB.TO) and Absolute Software (ABST.TO) are up 4 to 5%.

Financials shares Manulife Financial (MFC.TO), Canadian Imperial Bank of Commerce (CM.TO), National Bank of Canada (NA.TO), Sun Life Financial (SLF.TO), Bank of Montreal (BMO.TO) and Royal Bank of Canada (RY.TO) are up 2 to 3.5%.

Lithium Americas Corp (LAC.TO), up more than 9%, is the top gainer in the Materials Index. First Quantum Minerals (FM.TO), Ivanhoe Mines (IVN.TO) and Methanex Corp (MX.TO) are gaining 8.7%, 7.3% and 6.5%, respectively. Lundin Mining (LUN.TO), Ero Copper (ERO.TO), Hudbay Minerals (HBM.TO) and Canfor Corp (CFP.TO) are among the other major gainers in the section.

Data from Statistics Canada showed Canada’s trade surplus broadened to C$ 5.3 billion in May of 2022, from an upwardly revised C$ 2.2 billion in the prior month. It was the largest monthly trade surplus since August of 2008, as exports rose 4.1% from a month earlier to a record high of C$ 68.4 billion. Meanwhile, imports decreased 0.7% to C$ 63.1 billion, the first decrease in four months.

The Ivey Purchasing Managers Index in Canada fell to 62.2 in June of 2022 from 72 in the previous month, a report from the Richard Ivey School of Business showed. It was the lowest reading since February.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.