TSX Ends Notably Higher; Materials Shares Rise Sharply

(RTTNews) - Canadian stocks closed on a firm note on Friday, tracking positive U.S. and European markets, and firm commodity prices.

Market was also supported by data showing a bigger than expected uptick in U.S. unemployment rate that helped raise hopes the Fed would slow its pace of interest rate hikes in the upcoming meetings.

The benchmark S&P/TSX Composite Index opened with a positive gap of nearly 250 points at 19,487.03 and surged to 19,580.08, fell to a low of 19,299.95 around noon. However, it subsequently began climbing higher, and finally ended the session with a gain of 208.59 points or 1.08% at 19,449.81.

Materials shares rallied sharply, as metal prices surged. Financials shares were among the major gainers. Technology stocks declined sharply.

The Materials Capped Index climbed 5.89%. Yamana Gold (YRI.TO) soared more than 18%. Yamana Gold rallied sharply after Pan American Silver Corp. (PAAS.TO) and Agnico Eagle Limited (AEM.TO) delivered a definitive binding offer to the board of Yamana Gold Inc., pursuant to which Pan American would Yamana, and Yamana would sell certain subsidiaries and partnerships which hold Yamana's interests in its Canadian assets to Agnico Eagle. The aggregate consideration of the deal is $4.8 billion, or $5.02 per Yamana share.

Pan American Corp shares lost about 4%, while Agnico Eagle Mines gained 3.6%.

Equinox Gold (EQX.TO) surged 18%. Hudbay Minerals (HBM.TO) and First QuantumMinerals (FM.TO) gained 16.2% and 14.8%, respectively. Kinross Gold Corp (K.TO), Capstone Mining Corp (CS.TO), Osisko Mining (OSK.TO), Torex Gold Resources (TXG.TO), Oceanagold Corp (OGC.TO), Fortuna Silver Mines (FVI.TO), Eldorado Gold (ELD.TO) and Wheaton Precius Metals (WPM.TO) ended higher by 10 to 13%.

In the financials section, Sprott Inc (SII.TO), Fairfax Financial Holdings (FFH.TO), CDN Western Bank (CWB.TO), Onex Corp (ONEX.TO), National Bank of Canada (NA.TO), Manulife Financial (MFC.TO) and Canadian Imperial Bank of Commerce (CM.TO) gained 2 to 5%.

In the technology section, Telus International (Cda) Inc (TIXT.TO) tanked 7.2%.

Shopify Inc (SHOP.TO) drifted down 6.6%. Absolute Software (ABST.TO), Open Text Corp (OTEX.TO), Constellation Software (CSU.TO) and Descartes Systems (DSG.TO) also ended sharply lower.

Investors also digested Canadian jobs data. According to Statistics Canada's report, the Canadian economy added 108,300 jobs in October, the most since February, and much above the expectations of an addition of 10,000 jobs. Full-time employment in Canada rose by 119,300 jobs in October, the most since May.

The unemployment rate in Canada stood at 5.2% in October, unchanged from the prior month.

Data from the Labor Department showed non-farm payroll employment in the U.S. jumped by 261,000 jobs in October after surging by an upwardly revised 315,000 jobs in September. Economists had expected employment to climb by about 200,000 jobs compared to the addition of 263,000 jobs originally reported for the previous month.

Meanwhile, the unemployment rate rose to 3.7% in October from 3.5% in September. The unemployment rate was expected to inch up to 3.6%.