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Canadian Market Firmly In Positive Territory After Bright Start

The Canadian stock market, back to business on Tuesday after a long weekend due to Civic Day holiday on Monday, is firmly up in positive territory an hour past noon after opening on a bright note.

Data showing a notable expansion in Canada manufacturing activity in the month of July is aiding sentiment. The IHS Markit Canada Manufacturing PMI came in with a reading of 52.9 for July 2020, rising from 47.8 a month earlier. The reading pointed to the first expansion in factory activity in five months and the sharpest since January last year.

Also, the pace of output expansion was the fastest since September 2018 and new orders went up for the first time since February amid a recovery in sales thanks to relaxation in lockdown measures.

Most of the markets across the globe had closed on buoyant note yesterday, riding on fairly encouraging data on manufacturing activity in the U.S., Eurozone, China and the U.K.

Although coronavirus spread and its impact on the global economy continue to weigh, investors are busy picking up stocks from across various sectors in the Canadian market today.

Energy shares are up sharply, tracking higher crude oil prices. Several stocks from healthcare, materials, telecom and information technology sections have moved up sharply. Consumer discretionary stocks are also finding good support, while industrials are weak.

The benchmark S&P/TSX Composite Index, which rose to 16,361.45, gaining nearly 200 points in the process, is up 140.88 points or 0.87% at 16,310.08 about an hour past noon.

Among the stocks that have moved up sharply on strong volumes, Crescent Point Energy (CPG.TO) is up nearly 7%, Baytex Energy (BTE.TO) is surging up 6.5%, Whitecap Resources (WCP.TO) is rising 4.75%, Cenovus Energy (CVE.TO) is advancing 4%, and Suncor Energy (SU.TO) and Enbridge Inc. (ENB.TO) are both up nearly 2%.

Barrick Gold Corporation (ABX.TO), B2 Gold Corp (BTO.TO), Kinross Gold Corporation (K.TO) are up 1.3 to 1.6%. Air Canada (AC.TO) is also up on strong volumes, rising 1.4% from previous close.

Among other prominent gainers, Shopify Inc. (SHOP.TO) is up 4.75%, Nutrien (NTR.TO) is up 4.7% and TC Energy (TRP.TO) is moving up nearly 4%.

Among the losers, Bombardier Inc. (BBD.B.TO) is down by about 5%, Canadian Pacific Railway (CP.TO) is declining 2.2%, Alimentation Couche-Tard Inc. (ATD.B.TO) is lower by 1.3% and Canadian National Railway (CNR.TO) is donw 1%.

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