Canadian Market Modestly Higher; Energy Stocks Rally On Firm Oil Prices

After a positive start and a subsequent fall from higher levels that very nearly dragged it down into negative territory, the Canadian market recovered Monday morning, thanks to strong gains in the energy sector.

Positive cues from European markets and higher crude oil prices contribute to the uptick in the market.

The benchmark S&P/TSX Composite Index is up 54.94 points or 0.27% 20,688.00.

The Capped Energy Index is climbing more than 4%, as oil prices are rising amid concerns over U.S. supplies due to the impact of Hurricane Ida.

According to reports, about three-quarters of the offshore oil production in the Gulf of Mexico, or about 1.4 million barrels per day, has remained halted since late August. Last week's EIA data showing declines in crude oil, gasoline and distillate stockpiles in the U.S. also supported oil's advance.

Crescent Point Energy (CPG.TO) is soaring nearly 12% after the company said it is raising its fourth-quarter dividend to $0.03 per share. Following this, the annualized dividend works out to $0.12 per share, an $0.11 increase from the current level.

Based on its initial budgeting process and the current outlook for commodity prices, the company expects production this financial year to be in the range of 131K-135K boe/day.

Vermilion Energy (VET.TO) is rising 8.75%, Enerplus Corp (ERF.TO) is gaining 5.8% and Imperial Oil (IMO.TO) is up 5.7%.

Whitecap Resources (WCP.TO), MEG Energy Corp (MEG.TO), Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), Parex Resources (PXT.TO), Tourmaline Oil Corp (TOU.TO) and Canadian Natural Resources (CNQ.TO) are up 3 to 4.5%.

In the materials section, Iamgold Corp (IMG.TO), Oceanagold Corp (OGC.TO) and Fortuna Silver Corp (FVI.TO) are up 7 to 8%. Silvercrest Metals (SIL.TO), Equinox Gold Corp (EQX.TO), New Gold (NGD.TO), Pretium Resources (PVG.TO), MAG Silver Corp (MAG.TO) and Centerra Gold Inc (CG.TO) are gaining 5 to 6.5%.

Among information technology stocks, Nuvei Corp (NVEI.TO) is down nearly 6%. Lightspeed Pos (LSPD.TO), Kinaxis Inc (KXS.TO), Hut 8 Mining Corp (HUT.TO), Shopify Inc (SHOP.TO), Absolute Software Corp (ABST.TO) and Tecsys Inc (TCS.TO) are down 2 to 5%.

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