After a positive start and a subsequent retreat, the Canadian stock market rose sharply Monday morning, and was firmly up in positive territory a little past noon.
Despite continuing spikes in new coronavirus cases in the U.S. and several other countries, and possibility of another lockdown at several places, the market has moved up today, with stocks from energy, consumer discretionary, consumer staples and utilities sections attracting buyers.
Shares from industrial, financial and telecommunications sectors too are mostly up with strong gains, while select stocks from information technology, materials and healthcare sectors have moved higher. Real estate stocks are a bit subdued.
The benchmark S&P/TSX Composite Index, which spurted to 15,425.00, gaining nearly 235 points in the process, is up 190.69 points or 1.26% at 15,379.67 a few minutes past noon.
Ballard Power Systems (BLDP.TO) is soaring more than 15% on strong volumes. Air Canada (AC.TO) is rising 4.8%, Suncor Energy (SU.TO) is up 3.7% and Loblaw Companies (L.TO) is surging up 3%.
Bank of Nova Scotia (BNS.TO), Canadian Natural Resources (CNQ.TO), Enbridge (ENB.TO), Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) are also up on impressive volumes, adding 1.5 to 2.3% to their previous closing levels.
Restaurant Brands International (QSR.TO), George Weston (WN.TO), Cogeco Communications (CCA.TO), Constellation Software (CSU.TO), Canadian Pacific Railway (CP.TO) and Shopify Inc. (SHOP.TO) are among the other prominent gainers.
In economic news, producer prices in Canada fell 4.9% in the month of May 2020, over the same month in the previous year.
The industrial product price index increased 1.2% month-over-month in May of 2020, after falling 2.3% in the previous month which was the largest decrease since December of 2008.
The raw materials price index in Canada rose 16.4% on a monthly basis in May of 2020, after four straight months of decline,
Meanwhile, the value of building permits in Canada jumped 20.2% from a month earlier to C$ 7.4 billion in May 2020, following a 15.4% plunge in the previous month.
Worries about rising coronavirus cases linger as data from Johns Hopkins University shows the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.
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