Technology stocks

Energy and technology stocks drive Canadian market higher; TSX up 1.8%

The Canadian market is firmly anchored in positive territory on Thursday afternoon, with stocks across several sectors posting nice gains on sustained buying interest.

A positive trend in the world markets amid a slight easing in inflation concerns and hopes that the Fed may begin to ease policy later this year, this is helping to support sentiment.

Oil inventories are up sharply, supported by a sharp rise in crude oil prices. Consumer Discretionary, Technologyfinancial services and materials stocks are the other main gainers.

The benchmark S&P/TSX Composite Index was up 342.06 points or around 1.8% at 19,071.72.

The capped energy index is up 4.5%. Crescent Point Energy (CPG.TO), Vermilion Energy (VET.TO), Advantage Oil & Gas (AAV.TO), Nuvista Energy (NVA.TO), Freehold Royalties (FRU.TO) and MEG Energy (MEG.TO) earn 11 to 14%.

Consumer discretionary stocks Magna International (MG.TO), Linamar Corp (LNR.TO), Aritzia Inc (ATZ.TO) and Brp Inc (DOO.TO) climb 4.5-6%.

In the technology section, Hut 8 Mining Corp (HUT.TO) soared nearly 16%. Magnet Forensics (MAGT.TO) and Converge Technology Solutions (CTS.TO) both gain around 6.5%. Shopify Inc (SHOP.TO), Celestica Inc (CLS.TO), BlackBerry (BB.TO) and Absolute Software (ABST.TO) are up 4-5%.

Financial stocks Manulife Financial (MFC.TO), Canadian Imperial Bank of Commerce (CM.TO), National Bank of Canada (NA.TO), Sun Life Financial (SLF.TO), Bank of Montreal (BMO.TO) and Royal Bank of Canada (RY.TO) are up 2-3.5%.

Lithium Americas Corp (LAC.TO), up more than 9%, is the top gainer in the materials index. First Quantum Minerals (FM.TO), Ivanhoe Mines (IVN.TO) and Methanex Corp (MX.TO) gained 8.7%, 7.3% and 6.5% respectively. Other top gainers in the section were Lundin Mining (LUN.TO), Ero Copper (ERO.TO), Hudbay Minerals (HBM.TO) and Canfor Corp (CFP.TO).

Statistics Canada data showed Canada’s trade surplus widened to C$5.3 billion in May 2022, from an upwardly revised C$2.2 billion the previous month. This is the largest monthly trade surplus since August 2008, with exports rising 4.1% from the previous month to a record C$68.4 billion. Meanwhile, imports fell 0.7% to C$63.1 billion, the first drop in four months.

The Ivey Purchasing Managers Index in Canada fell to 62.2 in June 2022 from 72 the previous month, according to a report from the Richard Ivey School of Business. It was the lowest reading since February.

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