Canadian Shares Extending Gains After Firm Start

(RTTNews) - Canadian stocks opened on a firm note Monday morning and gained further ground in positive territory by noon with investors indulging in strong buying for the second consecutive day.

China's interest rate reforms and hopes that more central banks across the globe will step up stimulus to boost growth set up a bright start for the market this morning. Higher crude oil prices helped as well.

Energy, consumer discretionary, industrial and information technology stocks moved higher. Shares from utilities, real estate, financial and consumer staples sections also found support.

The benchmark S&P/TSX Composite Index was up 129.04 points, or 0.8%, at 16,279.03 at noon.

On Friday, the index ended up 137.26 points, or 0.86%, at 16,149.79.

Precision Drilling Corp. (PD.TO) shares soared 10%. The company lowered its 2019 capital expenditure plan to approximately C$144 million, from previously stated budget of C$169 million. The company said it remains firmly committed to its deleveraging strategy and reaffirmed debt reduction target for 2019, and for long-term.

Husky Energy (HSE.TO) shares gained 5%. The company announced on Friday that it will resume full production at its White Rose field, which was shut down last November after an oil spill.

Encana Corp. (ECA.TO), Parex Resources (PXT.TO), Baytex Energy (BTE.TO), Crescent Point Energy (CPG.TO), PrairieSky Royalty (PSK.TO), Enerplus Corp. (ERF.TO), Suncor Energy (SU.TO), Vermilion Energy (VET.TO), ARC Resources (ARX.TO) and Canadian Natural Resources (CNQ.TO) gained 1 to 3%.

Cannabis stock CannTrust Holdings Inc. (TRST.TO) declined 2.5% after the company said the Ontario government's cannabis retailer is returning all of the company's products it has because they do not conform with the terms of its master cannabis supply agreement. The company said the total value of the products is about $2.9 million.

Aurora Cannabis Inc. (ACB.TO) announced it has completed the acquisition of Hempco Food and Fiber Inc. (HEMP). Following this, Hempco is now a wholly-owned subsidiary of Aurora. The stock was down by about 0.7%.

Bombardier Inc. (BBD.B.TO), Shopify Inc. (SHOP.TO), Bank of Montreal (BMO.TO), Royal Bank of Canada (RY.TO), Canadian Imperial Bank of Commerce (CM.TO) and Bank of Nova Scotia (BNS.TO) were up with sharp to moderate gains on strong volumes.

Canopy Growth Corporation (WEED.TO) declined more than 3%. Barrick Gold Corporation (ABX.TO) and B2Gold Corp (BTO.TO) were down marginally.

U.S. stocks were moving higher amid continued optimism about new global stimulus. News that President Donald Trump's administration is once again delaying restrictions on Chinese tech giant Huawei also contributed to the early strength on Wall Street.

Most of the markets across Europe and Asia-Pacific region ended on a positive note on Monday.