Canadian Market Extending Gains As Stocks Rally Amid Easing Virus Concerns

(RTTNews) - The Canadian market is firmly entrenched in positive territory Tuesday noon, extending gains from the previous session, amid easing concerns about the impact of the Omicron variant of the coronavirus.

Indications the variant causes milder symptoms has helped offset worries the new strain could derail the global economic recovery.

Data showing a faster pace of economic expansion in Canada is also aiding sentiment.

A surge in oil prices amid rising optimism about the outlook for energy demand has triggered another round of hectic buying in energy stocks. Shares from information technology, healthcare, consumer discretionary and materials sectors are also up with impressive gains. Several stocks from industrials and real estate sectors are moving up as well.

The benchmark S&P/TSX Composite Index is up 340.57 points or 1.63% at 21,201.67 a few minutes past noon.

The Capped Energy Index is rising 3.25%. Crescent Point Energy (CPG.TO), Birchcliff Energy (BIR.TO) and Arc Resources (ARX.TO) are gaining 7%, 6% and 5%, respectively. Enerplus Corp (ERF.TO) is up 4.7%, while Canadian Natural Resources (CNQ.TO), Cenocus Energy (CVE.TO), MEG Energy (MEG.TO), PrairieSky Royalty (PSK.TO) and Parex Resources (PXT.TO) are up 3 to 4%.

The Capped Information Technology Index is up 3.25%. Dye & Durham (DND.TO) is soaring more than 11%. Viq Solutions (VQS.TO), Hut 8 Mining (HUT.TO), Lightspeed Pos (LSPD.TO), Converge Technology Solutions (CTS.TO, Docebo Inc (DCBO.TO), Shopify Inc (SHOP.TO), Alithya Corp (ALYA.TO), Kinaxis Inc (KXS.TO), Nuvei Corp (NVEI.TO) and BlackBerry (BB.TO) are gaining 3.5 to 7%.

In the Healthcare Index, Well Health Technologies (WELL.TO), Organigram Holdings (OGI.TO), Canopy Growth Corp (WEED.TO), Aurora Cannabis (ACB.TO), Bausch Health Companies (BHC.TO) and Cronos Group (CRON.TO) are up 3 to 7%.

Among consumer discretionary shares, Canada Goose Holdings (GOOS.TO) is rising 6.5%, Brp Inc (DOO.TO) is up 5.7% and Mty Food Group (MTY.TO) is gaining 5%. Linamar Corp (LNR.TO), Restaurant Brands International (QSR.TO), Martinrea International (MRE.TO), Gildan Activewear (GIL.TO), Aritzia Inc (ATZ.TO), Sleep Country Canada Holdings (ZZZ.TO) and Magna International (MG.TO) are advancing 2.7 to 4.4%.

Ivanhoe Mines (IVN.TO), Hudbay Minerals (HBM.TO), Osisko Mining (OSK.TO), Teck Resources (TECK.B.TO), First Quantum Minerals (FM.TO) and Lundin Mining Corp (LUN.TO) are among the major gainers in the materials section.

On the economic front, data released by Statistics Canada showed Canada's trade surplus rose to C$ 2.09 billion in October from a downwardly revised C$ 1.42 billion in the previous month.

Exports jumped 6.4% to a new record high of C$ 56.2 billion, the data showed. Total imports climbed by 5.3% to an all-time high of C$ 54.1 billion.

The Richard Ivey School of Business said the Ivey Purchasing Managers Index in Canada rose to 61.2 in November, from a 3-month low of 59.3 in October, indicating a faster expansion in economic activity in the country.