TSX rises on gold boost, US stimulus optimism
- Gold prices jumped 1% to a one-week high in response to a weaker dollar and expectations of substantial US fiscal stimulus.
- Toronto Stock Exchange's S&P/TSX composite index was up 16.62 points, or 0.09%, at 18,346.88.
Canada's main stock index rose on Tuesday, as gold miners tracked bullion prices higher, while hopes that a new US stimulus bill would lead to a swift economic recovery also lifted sentiment.
Gold prices jumped 1% to a one-week high in response to a weaker dollar and expectations of substantial US fiscal stimulus.
The White House expects the House of Representatives to track closely to President Joe Biden's relief plan as it marks up its latest round of legislation but expects lawmakers will tweak some elements.
At 9:44 a.m. ET (1444 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 16.62 points, or 0.09%, at 18,346.88.
Canopy Growth Corp, the world's largest pot producer, said it expects to turn a profit in the second half of 2022 after aggressive cost-cutting and higher demand for cannabis products helped narrow third-quarter losses.
SNC-Lavalin Group Inc said it would sell its oil and gas business to Kentech Corporate Holdings Ltd, an energy services company backed by private equity firm Blue Water Energy.
The energy sector dropped 2.2% as US crude prices were down 0.7% a barrel, while Brent crude lost 0.4%.
The financials sector slipped 0.2%. The industrials sector rose 0.4%.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.5% as gold futures rose 0.6% to $1,842.1 an ounce.
On the TSX, 89 issues were higher, while 129 issues declined for a 1.45-to-1 ratio to the downside, with 19.99 million shares traded.
The largest percentage gainers on the TSX were Aphria Inc , which jumped 16%, and Aurora Cannabis that rose 8.9%.
Cenovus Energy fell 4.9%, the most on the TSX, after posting a bigger-than-expected loss, hit by uneven demand for fuel due to renewed COVID-19 travel restrictions and weaker refinery operations.
The second biggest decliner was Vermilion Energy, down 4.3%.
The most heavily traded shares by volume were Zenabis Global Inc, NextSource Materials Inc and The Green Organic Dutchman Holdings.
The TSX posted seven new 52-week highs and no new lows.
Across all Canadian issues there were 121 new 52-week highs and 2 new lows, with total volume of 83.05 million shares.
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