TSX rises on jump in May factory sales

Canada's main stock index opened higher on Wednesday as data showed a 10.7% jump in May factory sales, suggesting a pickup in economic activity following coronavirus lockdowns.

At 9:42 a.m. ET (13:42 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 145.52 points, or 0.91%, at 16,053.97.

Canada's central bank maintained its benchmark interest rate at 0.25%, and said it will hold rates there until the economic impact of the pandemic is absorbed, while warning that growth will not return to pre-pandemic levels until 2022.

The Canadian dollar strengthened against its US counterpart as investors grew more optimistic about a coronavirus vaccine and domestic data showed a rebound in factory sales.

Cornerstone Capital Resources Inc said on Wednesday it intends to urge SolGold shareholders to replace the company's entire board, a day after rejecting the London-listed miner's takeover offer for the second time.

The energy sector climbed 2.7% as US crude prices were up 0.6% a barrel, while Brent crude added 0.5%.

The financials sector gained 1.8%. The industrials sector rose 1.1%.

The materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.1% as gold futures fell 0.3% to $1,806.1 an ounce.

On the TSX, 172 issues were higher, while 49 issues declined for a 3.51-to-1 ratio favouring gainers, with 21.05 million shares traded.

The largest percentage gainers on the TSX were Air Canada , which jumped 5.0% and Genworth MI Canada Inc, which rose 4.9%.

Wesdome Gold Mines Ltd fell 3.2%, the most on the TSX. The second-biggest decliner was Kinross Gold Corp, down 3.0%.

The most heavily traded shares by volume were Karora Resources Inc, up 1.6%; Air Canada, up 5.0% and Cenovus Energy Inc, up 4.8%.

The TSX posted three new 52-week highs and no new low.

Across all Canadian issues there were 19 new 52-week highs and three new lows, with total volume of 41.57 million shares.