TSX Ends On High Note On Vaccine News, Firm Oil Prices

(RTTNews) - The Canadian stock market ended on a buoyant note on Monday, as upbeat news from Moderna Inc. about the efficiency of its coronavirus vaccine in preventing the disease lifted sentiment and triggered strong buying in several sectors.

Higher crude oil prices, encouraging economic data from China and Japan, and strong Canadian manufacturing sales report also contributed to market's rise.

The benchmark S&P/TSX Composite Index ended with a gain of 214.17 points or 1.28% at 16,889.91, the day's high.

Energy stocks were the star performers in the session. The Capped Energy Index spurted as much as 5.22%. The Financial Index climbed 2.45% and the Real Estate Index gained 2.06%, while the Consumer Discretionary Index advanced nearly 1.75%.

Enerplus Corp (ERF.TO), up 8.8%, was the top gainer in the Energy Index. Parex Resources (PXT.TO) moved up 8.5%, MEG Energy (MEG.TO), Whitecap Resources (WCP.TO), Suncor Energy (SU.TO) and Vermilion Energy (VET.TO) surged up 6.5% - 8%.

Seven Generations Energy (VII.TO), Imperial Oil (IMO.TO), Cenovus Energy (CVE.TO), Husky Energy (HSE.TO) and Crescent Point Energy (CPG.TO) gained 5 to 6%, while Canadian Natural Resources (CNQ.TO) and PrairieSky Royalty (PSK.TO) ended higher by 4.25% and 4%, respectively.

In the financial section, Brookfield Asset Management (BAM.A.TO), Fairfax Financial Holdings (FFH.TO), Onex Corp (ONEX.TO), Manulife Financial (MFC.TO), CDN Western Bank (CWB.TO), Laurentian Bank (LB.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO) and Toronto-Dominion Bank (TD.TO) gained 2 to 7%.

Real estate stocks H&R Real Estate (HR.UN.TO) and First Capital REIT Units (FCR.UN.TO) gained 8% and 7%, respectively. Boardwalk Real Estate (BEI.UN.TO), Cominar R (CUF.UN.TO), Riocan Real Estate (REI.UN.TO), Real Matters (REAL.TO) and Dream Office (D-UN.TO) gained 3 to 5%.

In the consumer discretionary space, Sleep Country Canada Holdings (ZZZ.TO), Linamar Corp (LNR.TO), Aritzia Inc. (ATZ.TO), Restaurant Brands International (QSR.TO) and Great Canadian Gaming (GC.TO) gained 2.3 to 3.6%.

On the economic front, manufacturing sales in Canada rose 1.4% over month earlier to C$ 53.8 billion in September 2020, rebounding from a downwardly revised 1.4% fall in the previous month. Still, sales were 3.6% below their pre-pandemic levels in February.

Meanwhile, car Registrations in Canada increased to 173,984 Units in September from 171,584 Units in August of 2020.

On the vaccine front, Moderna (MRNA) said that the trial of its potential coronavirus vaccine has met the statistical criteria pre-specified in the study protocol for efficacy, with a vaccine efficacy of 94.5%.

"This is a pivotal moment in the development of our COVID-19 vaccine candidate. Since early January, we have chased this virus with the intent to protect as many people around the world as possible," said Stéphane Bancel, Chief Executive Officer of Moderna.

He added, "All along, we have known that each day matters. This positive interim analysis from our Phase 3 study has given us the first clinical validation that our vaccine can prevent COVID-19 disease, including severe disease."

U.S. stocks moved mostly higher on Monday, riding on upbeat news on the coronavirus front. The major averages all finished the day firmly in positive territory. The Dow surged up 470.63 points or 1.6%, the Nasdaq climbed 94.84 points or 0.8% and the S&P 500 jump 41.76 points or 1.2%.

The major European markets ended notably higher, and stocks markets across the Asia-Pacific region also closed on a high note.

In commodities, West Texas Intermediate Crude oil futures for December ended up $1.21 or about 3% at $41.34 a barrel.

Gold futures for December slid to $1,886.20 this morning, but rose to around $1,894 by noon, before paring some gains and settling at $1,88780 an ounce, up $1.60 or about 0.08% from previous close.

Silver futures for December ended up $0.027 at $24.802 an ounce, while Copper futures for December settled with a gain of $0.0440 at $3.2220 per pound.