Canadian Market Up Sharply As Energy, Materials Shares Rally

The Canadian market is up in positive territory on Thursday, extending gains from the previous session, with stocks from energy and materials surging higher on firm commodity prices.

Optimism about earnings and hopes that the Federal Reserve will announce a rate cut sometime in the second quarter appear to be aiding sentiment.

The benchmark S&P/TSX Composite Index is up 237.58 points or 1.14% at 21,126.98, a few minutes before noon.

In economic news, data from the Canada Mortgage and Housing Corporation showed housing starts in Canada slipped by 10% over a month earlier to 223,589 units in January.

A report from Statistics Canada said Canada’s manufacturing sales declined by 0.7% from a month earlier to C$ 71.2 billion in December 2023, abover preliminary estimates of a 0.6% fall. In November, manufacturing sales increased by an upwardly revised 1.5%.

The Energy Capped Index is up 3.15%. Birchcliff Energy (BIR.TO) is rising 6.5% and Cenovus Energy (CVE.TO) is gaining about 6.3%. Cenovus Energy reported a net income of $743 million or $0.39 per share for the fourth quarter of 2023, compared to $784 million or $0.39 per share in the prior-year quarter.

Athabasca Oil Corp (ATH.TO), Baytex Energy (BTE.TO), Kelt Exploration (KEL.TO), Crescent Point Energy (CPG.TO), Whitecap Resources (WCP.TO), Vermilion Energy (VET.TO), MEG Energy (MEG.TO) and Suncor Energy (SUR.TO) are up 3.5 to 6%.

The Materials Capped Index is up 1.5%. Seabridge Gold Inc (SEA.TO), up 17.3%, is the top gainer in the sector. Ssr Mining (SSRM.TO) is up 6.5%, while Kinross Gold (K.TO), Equinox Gold Corp (EQX.TO), Pan American Silver Corp (PAAS.TO), Dundee Precious Metals (DPM.TO) and Lundin Gold (LUG.TO) are advancing 3 to 4%.

Manulife Financial (MFC.TO), up 6.3%, is the top gainer in the Financials Index. Manulife reported fourth quarter net income of C$1.7 billion, compared to C$915 million in the year ago quarter.

Goeasy (GSY.TO) is up 3.75%. Fairfax Financial Holdings (FFH.TO), is up nearly 3%, while…