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Canadian Market Extending Recent Gains; Energy Stocks Rise Again

The Canadian stock market remains firmly entrenched in positive territory in late morning trades on Tuesday, with stocks from energy, healthcare, financial and consumer discretionary sections scoring strong gains.

The mood is quite upbeat thanks to news that the head of the General Services Administration in the U.S. has informed President-elect Joe Biden that the Trump administration is ready to begin the formal transition process.

Recent encouraging news on the coronavirus vaccine front, and higher crude oil prices are also contributing to market's solid gains.

The benchmark S&P/TSX Composite Index, which opened with a positive gap of over 110 points at 17,206.51, is up 186.44 points or 1.1% at 17,280.97 about half an hour before noon.

The Capped Energy Index is up nearly 5%, with several key stocks in the section extending gains from previous sessions and moving up quite sharply.

Vermilion Energy (VET.TO) is up nearly 10%. Whitecap Resources (WCP.TO) and Crescent Point Energy (CPG.TO) are up 9.3% and 9%, respectively. Enerplus Corp (ERF.TO), Parex Resources (PXT.TO), MEG Energy (MEG.TO), Prairiesky Royalty (PSK.TO), Suncor Energy (SU.TO), Husky Energy (HSE.TO) and Canadian Natural Resources (CNQ.TO) are gaining 5 to 8%.

In the financial section, Laurentian Bank (LB.TO) is rising 4.2%. Brookfield Asset Managment (BAM.A.TO), Great-West Lifeco (GWO.TO), Manulife Financial (MFC.TO), CDN Western Bank (CWB.TO) and Toronto-Dominion Bank (TD.TO) are gaining 2 to 3.1%.

Aurora Cannabis (ACB.TO), up nearly 21%, is the top gainer in the Healthcare Index. Cronos Group (CRON.TO) is rising 7.4%, Canopy Growth Corp (WEED.TO) is gaining 6.7% and Aphria Inc. (APHA.TO) is advancing 5.2%.

Among the gainers in the consumer discretionary section, Canada Goose Holdings (GOOS.TO) is surging up 8.5%. Martinrea International (MRE.TO), Magna International (MG.TO), Linamar Corp (LNR.TO), Dollarama (DOL.TO) and Sleep Country Canada Holdings (ZZZ.TO) are gaining 2 to 3%.

The news about Trump administration readying to begin the formal transition process has eliminated some of the lingering uncertainty about the outcome of the presidential election, although President Donald Trump has indicated he will continue to challenge the results in court.

According to reports, Biden has picked former Federal Reserve Chair Janet Yellen as Treasury Secretary.

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