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TSX Hits Fresh Closing High As Resources Shares Rally

The Canadian stock market stayed firm on Tuesday, hitting fresh record high, as materials and energy shares moved higher on firm commodity prices.

Optimism about economic recovery in the wake of some upbeat data from the U.S. and China, and an upward revision in global growth forecast by the International Monetary Fund (IMF) helped offset concerns about rising coronavirus cases and extended lockdown measures in several places across the world.

The benchmark S&P/TSX Composite Index, which rose to 19,153.00, ended the day with a gain of 77.35 points or 0.41% at 19,104.14.

The Capped Materials Index surged up nearly 2%. Oceanagold Corp (OGC.TO), Silvercorp Metals (SVM.TO), New Gold (NGD.TO), MAG Silver Corp (MAG.TO) and Fortuna Silver Corp (FVI.TO) gained 6 to 7%. Pan American Silver Corp (PAAS.TO), Hudbay Minerals (HBM.TO), Yamana Gold (YRI.TO), First Quantum Minerals (FM.TO) and Kinross Gold (K.TO) were among the other notable gainers in the materials section.

Energy stocks MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Tourmaline Oil Corp (TOU.TO), Cenovus Energy (CVE.TO) and Parex Resources (PXT.TO) gained 1.6 to 3.3%.

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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