Plus   Neg

Canadian Stocks Recovering After Mid-morning Setback

After a positive start and a subsequent fall into negative territory, the Canadian stock market regained lost ground amid selective buying in late morning trades on Tuesday.

With the focus on the Budget, the mood in the market is somewhat cautious. Also, investors are looking ahead to the U.S. Federal Reserve's monetary policy announcement, due tomorrow.

Energy, consumer discretionary, healthcare and materials shares are finding some support, while financial, industrial and information technology stocks are mostly subdued.

The benchmark S&P/TSX Composite Index, which declined to 16,223.30 after advancing to 16,275.31 in early trades, is currently up 18.16 points, or 0.11%, at 16,269.53.

On Monday, the benchmark S&P/TSX Composite Index ended up 111.02 points, or 0.69%, at 16,251.37, the highest level for the day.

Green Organic Dutchman Holdings (TGOD.TO) is rising nearly 8% on impressive volumes and Hexo Corp. (HEXO.TO) is up 5.2%, also on strong volumes. CannTrust Holdings (TRST.TO) is up 2.8% and Supreme Cannabis (FIRE.TO) is gaining 1.8%.

NuVista Energy (NVA.TO), Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Baytex Energy (BTE.TO) and Advantage Oil & Glass (AAV.TO) are among the prominent gainers in the energy space. Encana Corporation (ECA.TO) is declining 1.2% and Crescent Point Energy (CPG.TO) is down 0.7%.

In the materials space, B2Gold Corp. (BTO.TO) is down 0.7% and Barrick Gold Corporation (ABX.TO) is modestly lower.

In the financial space, Manulife Financial Corporation (MFC.TO) is up more than 2%, extending gains from previous session.

Canada's Finance Minister Bill Morneau will deliver the budget at 2 PM ET. This is the federal government's fourth, and final budget before the election this fall.

According to reports, Morneau might credit the Liberals' investments in infrastructure and other spending measures for the creation of almost 950-thousand jobs and the lowest unemployment rate in almost 40 years, as the Liberals look to bolster themselves after a shaky start to 2019 with the SNC-Lavalin affair.

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