Canadian Market Pares Early Gains, Up Modestly Around Noon

(RTTNews) - The Canadian market is up in positive territory in late morning trades on Tuesday, led by gains in energy and financial sectors.

The mood is positive as reports indicate the new Omicron variant causes milder symptoms, leading to hopes the recent surge could actually help to accelerate the end of the pandemic.

Information technology stocks are down sharply. Several stocks from real estate and consumer staples sections are also notably lower. Consumer discretionary shares are faring well.

The benchmark S&P/TSX Composite Index, which soared to 21,473.67 soon after the opening bell, is up 56.73 points or 0.27% at 21,279.57 about a quarter before noon.

The Capped Energy Index is climbing 3.15%. Parex Resources (PXT.TO), MEG Energy (MEG.TO) and Crescent Point Energy (CPG.TO) are up 6.3%, 6.5% and 5.8%, respectively. Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), Enerplus Corp (ERF.TO), Imperial Oil (IMO.TO), Arc Resources (ARX.TO) and Canadian Natural Resources (CNQ.TO) are gaining 2.5 to 4.5%.

In the financial section, Manulife Financial (MFC.TO), Bank of Montreal (BMO.TO), National Bank of Canada (NA.TO), Toronto-Dominion Bank (TD.TO) and Laurentian Bank (LB.TO) are up 2 to 4%. Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Onex Corp (ONEX.TO) and Canadian Imperial Bank of Commerce (CM.TO) are also up sharply.

Technology stocks Shopify Inc (SHOP.TO) and Descartes Systems (DSG.TO) are declining 8.5% and 7%, respectively. Enghouse Systems (ENGH.TO), Viq Solutions (VQS.TO), Dye & Durham (DND.TO), Lightspeed Pos (LSPD.TO) and Kinaxis Inc (KXS.TO) are lower by 3.7 to 4.8%.

In economic news, data from Statistics Canada showed raw materials prices in Canada decreased to 36.2% (on yearly basis) in November from 38.5% in October. The Raw Materials Price Index in Canada fell by 1% month-over-month in November from a 4.8% increase in the prior month.

The industrial product price in Canada went up 0.8% month over month in November of 2021, following an upwardly revised 1.6% rise in the previous month. Producer prices in Canada increased 18.1% in November of 2021 over the same month in the previous year.

The IHS Markit Canada Manufacturing PMI came in at 56.5 in December of 2021, down from 57.2 in November and the lowest reading in five months.