Canadian Market Remains In Positive Territory After Steady Start

(RTTNews) - The Canadian stock market remains fairly well placed in positive territory a little past noon on Tuesday, led by handsome gains in the energy section thanks to higher crude oil prices.

The mood remains a bit cautious though, due to worries about spikes in coronavirus cases in several countries across the worlds. The U.K., Germany and many other countries have imposed tighter restrictions on movements to curb the spread of the virus.

The benchmark S&P/TSX Composite Index was up 85.51 points or 0.48% at 17,613.28 about half an hour past noon.

The Capped Energy Index is up 5.6% with several stocks rising sharply, after oil prices climbed nearly 5%. Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Parex Resources (PXT.TO), Imperial Oil (IMO.TO), MEG Energy (MEG.TO), Enerplus Corp (ERF.TO), ARC Resources (ARX.TO), Husky Energy (HSE.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO), Seven Generations Energy (VII.TO), Whitecap Resources (WCP.TO) and PrairieSky Royalty (PSK.TO) are up 4 to 9%.

Suncor Energy (SU.TO) is moving up more than 6%. The company announced Monday that it will take a non-cash after-tax impairment charge of about C$425 million in the fourth quarter of 2020 regarding its share of the White Rose asset and West White Rose Project. Suncor added that its 2021 guidance remains unchanged as the White Rose field will remain on line producing.

Materials shares, which posted strong gains in the previous session, are weak on profit taking. Consumer staples shares are also weak, while consumer discretionary and telecom stocks are doing fairly well.

Shares from financial, industrial, healthcare and information technology sectors are turning in a mixed performance.

Agnico Eagle Mines Limited (AEM.TO) and TMAC Resources Inc. (TMR.TO) have entered into agreements as per which Agnico Eagle will acquire all of the outstanding common shares of TMAC at a price of C$2.20 per share. Agnico Eagle Mines shares are down nearly 3%, while TMAC Resources is up nearly 40%.

On the economic front, data released by Statistics Canada this morning showed the industrial product price index in Canada fell 0.6% mom in November of 2020, in line with preliminary estimates. The raw materials price index rose 0.6% over a month earlier in November, following a 0.4% gain in October. Year over year, the raw materials price index fell 1.7% in November.