Canada’s commodity-heavy stock index rose on Tuesday, tracking strength in gold miners and energy stocks, while shares of cannabis firm Hexo Corp plunged after a buyout deal from Tilray Brands Inc.
At 10:15 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 114.35 points, or 0.56%, at 20,390.17.
“Canada basically is getting a boost from a rally in commodities, outperforming the U.S. markets and pretty much all sectors are up across the board,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
The materials sector, which includes precious and base metals miners and fertilizer companies, gained 1.3% as spot gold and copper prices rose on weaker dollar.
Most major sectors of the TSX were in the positive territory, including energy, which gained 0.8% on rising crude prices.
Oil rises over 1% with US and China inflation in focus
The only laggard was healthcare, down 1.6%, dragged by a 6.7% fall in Tilray Brands after the cannabis producer said it would buy Hexo Corp for $56 million.
Shares of Hexo Corp, too, plunged 26.5%.
The TSX had begun to recover in the past week, ending the first quarter higher even as the bank rout spurred a sell-off.
But resilience in the domestic and U.S. labor market has raised questions over further monetary policy decisions from the Bank of Canada (BoC) and the U.S. Federal Reserve.
Investors are awaiting the BoC’s interest rate decision due on Wednesday, with traders expecting the central bank to keep rates unchanged.
Among other major movers, shares of Teck Resources rose 1.6% after miner Glencore Plc proposed Teck shareholders would receive 24% of the combined metals group and $8.2 billion in cash.
Shares of gold miner Centerra Gold Inc advanced 3.9% after Canadian Imperial Bank of Commerce upgraded the stock to “outperformer” from “neutral”.
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