TSX Ends On Firm Note; Energy, Materials Shares Rally

Energy and materials shares turned in a fine performance in the Canadian market on Monday and lifted the benchmark S&P/TSX Composite Index to a strong close.

Despite worries about slowing growth and rising interest rates, a rally in European markets and firm commodity prices helped lift sentiment. Activity in the market was a bit subdued as the U.S. market remained closed for a holiday.

The S&P/TSX Composite Index, which climbed nearly 270 points to 19,129.70, ended with a gain of 167.50 points or 0.89% at 19,028.86.

The Energy Capped Index surged 2.68%. Vermilion Energy (VET.TO) and Advantage Oil & Gas (AAV.TO) gained 8.7% and 8.25%, respectively. Enerplus Corp (ERF.TO), Crescent Point Energy (CPG.TO), Baytex Energy (BTE.TO), MEG Energy (MEG.TO), Peyto Exploration (PEY.TO), Canadian Natural Resources (CNQ.TO) and Whitecap Resources (WCP.TO) gained 3.5 to 6.2%.

The Materials Capped Index climbed 2.15%. Alamos Gold (AGI.TO), Equinox Gold (EQX.TO), Agnico Eagle Mines (AEM.TO), K92 Mining (KNT.TO), Franco-Nevada Corp (FNV.TO), Barrick Gold Corp (ABX.TO), Seabridge Gold (SEA.TO) and Methanex (MX.TO) moved up 4 to 6.5%.

Consumer discretionary stocks Mty Food Group (MTY.TO), Brp Inc (DOO.TO) and Spin Master (TOY.TO) ended stronger by 4.3%, 3.5% and 3%, respectively. Sleep Country Canada Holdings (ZZZ.TO), Dollarama Inc (DOL.TO), Restaurant Brands International (QSR.TO) and Canadian Tire Corp (CTC.A.TO) gained 1.4 to 2.1%.

In the consumer staples section, Alimentation Couche-Tard Inc (ATD.TO) gained more than 3%, Primo Water Corp (PRMW.TO) surged nearly 2%, Weston George (WN.TO) advanced 1.5% and Metro Inc (MRU.TO) climbed 1.15%.

In economic news, a report from Markit Economics said the S&P Global Canada Manufacturing PMI fell to 54.6 in June of 2022 from 56.8 in the previous month. The latest reading pointed to the 24th straight month of expansion in factory activity but at the slowest pace since January of 2021.

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