The Canadian stock market ended on a positive note on Monday, riding on strong gains in materials, healthcare and energy shares.
Information technology and consumer discretionary stocks, and a few key stocks from the financial space, drifted lower, but the overall mood was a bit positive thanks to data that showed the Canadian economy expanded at its fastest pave on record in the month of December.
The benchmark S&P/TSX Composite Index, which briefly fell into the red midway through the session, ended the day with a gain of 94.41 points or 0.54% at 17,527.77. The index, which spurted to 17,593.81 in early trades, fell to a low of 17,405.43 a little past
The Capped Materials Index surged up 6.5% as several stocks from the section rose sharply, tracking the rise in bullion prices. Fortuna Silver Mines (FVI.TO) soared more than 13%, while Silvercrest Metals (SIL.TO), Terenga Gold (TGZ.TO), Endeavour Mining Corp (EDV.TO), Alamos Gold (AGI.TO), Oceanagold (OGC.TO), Kinross Gold (K.TO), Wheaton Precious Metals (WPM.TO), Pan American Silver (PAAS.TO) and Barrick Gold Corporation (ABX.TO) gained 8.5 to 11%.
The Capped Healthcare Index moved up 4.1%, riding on Aurora Cannabis (ACB.TO), up 14.3%, Cronos Group (CRON.TO), up 9.7%, Canopy Growth Corporation (WEED.TO), up 6.7% and Aphria Inc. APHA.TO), which rose 5.8%. Bausch Health Companies (BHC.TO) gained about 3.5%.
According to the data released by Statistics Canada, the manufacturing activity in Canada expanded in December. The IHS Markit Canada Manufacturing PMI rose to 57.9 in December of 2020 from 55.8 in November.
The rollout of coronavirus vaccines in several countries across the world, and data showing expansion in manufacturing activity in China, the U.K. and Eurozone aided sentiment.
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