TSX Pares Early Gains, Ends Just Modestly Higher

(RTTNews) - After a buoyant start and a subsequent fall from higher levels, the Canadian market edged up a bit Tuesday morning, but dropped into negative territory around early afternoon.

Despite recovering from the day's low, the market struggled to make a significant headway up north and eventually ended the session modestly higher.

Firm bullion prices and positive cues from European markets set up a bright start for Canadian shares. However, the market pared gains as investors turned cautious and cut down their positions amid concerns about a recession, and rising interest rates.

The benchmark S&P/TSX Composite Index ended with a gain of 58.85 points or 0.3% at 19,443.77. The index, which hit a high of 19,661.58 in early trades, dropped to a low of 19,380.34 a little past noon.

Kinross Gold Corporation (K.TO) and Barrick Gold Corporation (ABX.TO) gained 5.6% and 5%, respectively. Algonquin Power & Utilities Corp (AQN.TO) sirged 4.3%, and Shopify Inc (SHOP.TO) climbed 3.78%.

ARC Resources (ARX.TO) tanked 11%. Crescent Point Energy (CPG.TO) tumbled 7.9%. Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO) and Suncor Energy (SU.TO) fell 5.2%, 5% and 3.9%, respectively. Bank of Nova Scotia (BNS.TO) lost 1.7% and and TC Energy Corporation (TRP.TO) ended 1.26% down.

On the economic front, a report from Markit Economics said the S&P Global Canada Manufacturing PMI dropped to 49.2 in December of 2022 from 49.6 in November, pointing to the fifth straight month of falling factory activity, amid further falls in output, new orders and purchasing activity.