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Canadian Market Up Firmly In Positive Territory After Hitting Fresh Record High

The Canadian stock market is firmly entrenched in positive territory in early afternoon trades on Tuesday, having hit fresh record highs thanks to strong buying at several counters from across various sectors.

A slew of encouraging U.S. economic data, an upward revision in global growth projections by the International Monetary Fund (IMF), and firm commodity prices are supporting the market. Persisting worries about spikes in coronavirus cases and extended lockdown measures at several places across the world weigh on sentiment and limit market's upside.

The benchmark S&P/TSX Composite Index was up 90.02 points or 0.49% at 19,116.81 nearly an hour past noon. The index hit a high of 19,153.00.

The Capped Materials Index is surging up 2.5% with several top stocks in the space posting handsome gains. Silvercorp Metals (SVM.TO), OceanaGold (OGC.TO), MAG Silver Corp (MAG.TO), Fortuna Silver Mines (FVI.TO), First Majestic Silver Corp (FR.TO), New Gold (NGD.TO), Pan American Silver Corp (PAAS.TO) and First Quantum Minerals (FM.TO) are gaining 5 to 8%.

The Capped Energy Index is up by about 1.2%. Parex Resources (PXT.TO), MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Cenovus Energy (CVE.TO) and Tourmaline Oil Corp (TOU.TO) are gaining 1.6 to 3%.

The Information Technology Index is up 1.6%. Lightspeed Pos (LSPD.TO) is rising 5%. Photon Control (PHO.TO), Shopify Inc (SHOP.TO), Dye & Durham (DND.TO), Absolute Software (ABST.TO), Kinaxis Inc (KXS.TO), Descartes Systems (DSG.TO) and Constellation Software (CSU.TO) are gaining 1.5 to 3%.

The IMF raised its global growth projections for this year and next, citing huge fiscal stimulus in some big economies and a vaccine-driven recovery in the future.

The world economy is set to grow 6% this year and 4.4% next year, the global lender said in its latest World Economic Outlook report, released Tuesday.

In a January update to the WEO, the IMF had projected growth of 5.5% and 4.2%, respectively. The latest projections are also stronger than those in the October WEO report.

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