TSX Ends Sharply Higher On Strong Data, Stimulus Hopes

(RTTNews) - The Canadian stock market ended on a strong note on Monday, lifted by upbeat data on the country's manufacturing activity, a drop in bond yields and rising optimism about additional U.S. stimulus.

Positive news on the vaccine front with Johnson & Johnson receiving the USFDA nod for emergency use of its Covid vaccine also aided sentiment.

Stocks from across several sectors moved up sharply. Healthcare, industrial, technology and consumer discretionary stocks were among the major gainers.

The benchmark S&P/TSX Composite Index ended up by 239.36 points or 1.33% at 18,299.62, after climbing to a high of 18,363.22.

The Capped Healthcare Index climbed 2.87%. Cronos Group (CRON.TO), Canopy Growth Corp (WEED.TO), Aphria Inc. (APHA.TO) and Aurora Cannabis (ACB.TO) gained 3.8 to 5%.

The Industrials Index surged up 2.63%. Cae Inc. (CAE.TO) soared nearly 13% after the company agreed to acquire the military training division of aerospace and defense technology firm L3Harris Technologies Inc. (LHX) for $1.05 billion, subject to customary adjustments.

Air Canda (AC.TO) gained 4.8%. Air Canada announced an agreement to revise the capacity purchase agreement with Jazz Aviation. The agreement addresses the dramatic and sustained reduction in air travel demand caused by the COVID-19 pandemic by optimizing the Jazz fleet.

WSP Global Inc. (WSP.TO) gained more than 8%. Mullen Group (MTL.TO), Ballard Power Systems (BLDP.TO), Badger Daylighting (BAD.TO), Aecon Group (ARE.TO), Snc-Lavalin (SNC.TO) and Boyd Group Services (BUD.TO) gained 4 to 6%.

The Information Technology Index climbed 2.34%. BlackBerry (BB.TO), up 7.15%, was the biggest gainer in the section. Docebo Inc. (DCBO.TO) ended nearly 7% up. Lightspeed Pos (LSPD.TO), Photon Control (PHO.TO), Sierra Wireless (SW.TO), Quarterhill (QTRH.TO), Constellation Software (CSU.TO) and Descartes Systems Group (DSG.TO) gained 3 to 5%.

The Consumer Discretionary index gained 2.01%. Linamar Corp (LNR.TO), Brp Inc. (DOO.TO), Gildan Activewear (GIL.TO) and Canada Goose Holdings (GOOS.TO) moved up 3.6 to 4.2%.

Among financials, Manulife Financial (MFC.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Fairfax Financial Holdings (FFH.TO), Royal Bank of Canada (RY.TO) and Canadian Imperial Bank of Commerce (CM.TO) gained 1 to 2.5%.

On the economic front, the IHS Markit Canada Manufacturing PMI rose to 54.8 in February of 2021 from 54.4 in the previous month. The latest reading pointed to the 8th straight month of expansion in the country's factory activity and at a stronger pace.

Data released by Statistics Canada showed Canada's current account deficit narrowed by C$ 3.2 billion to C$ 7.3 billion in the fourth quarter of 2020, compared to market forecasts of C$ 8.3 billion.