Energy Stocks Lift TSX To Strong Close

(RTTNews) - The Canadian stock market ended on a firm note on Wednesday, led by strong gains in the energy sector as crude oil prices rose sharply after data showed a drop in crude inventories last week.

The benchmark S&P/TSX Composite Index ended up by 140.54 points or 0.68% at 20,693.79.

The Capped Energy Index climbed 4.39%, with all the components scoring handsome gains. Vermilion Energy (VET.TO), Enerplus Corp (ERF.TO) and Crescent Point Energy (CPG.TO) gained 6.4 to 6.8%. Parex Resources (PXT.TO) and Cenovus Energy (CVE.TO) both ended nearly 6% up.

Tourmaline Oil Corp (TOU.TO) and Suncor Energy (SU.TO) climbed 5.7% and 5.1%, respectively. Arc Resources (ARX.TO), Canadian Natural Resources (CNQ.TO) and PrairieSky Royalty (PSK.TO) also rose sharply.

Methanex Corp (MX.TO), up more than 5%, was the top gainer in the materials section. Lithium Americas Corp (LAC.TO) gained 4.5%, while Nutrien (NTR.TO), Teck Resources (TECK.B.TO), Capstone Mining Corp (CS.TO) and Ero Copper (ERO.TO) gained 3 to 3.6%.

Financial shares Manulife Financial (MFC.TO) and Canadian Imperial Bank of Commerce (CM.TO) gained 1.35% and 1.2%, respectively. Toronto-Dominion Bank (TD.TO) gained nearly 1% and Laurentian Bank (LB.TO) gained 0.9%.

Among information technology stocks, Evertz Technologies (ET.TO) surged up more than 9%. Lightspeed Pos (LSPD.TO) gained 2.4%.

Canadian National Railway (CNR.TO) shares gained 1.5% after the company said Kansas City Southern (KSU) has provided notice of termination of the definitive merger agreement inked with CN earlier this year, as the agreement fails to meet certain regulatory norms.

KCS will pay $700 million in cash to CN as 'company termination fee' as well as another $700 million in the form of 'CP termination fee refund' provided for in the CN merger deal, Canadian National Railway said.

On the economic front, the annual inflation rate in Canada accelerated a more than 18-year high of 4.1% in August from 3.7% in July. The forecast was for a 3.9% reading.

The Consumer Price Index in Canada increased 0.2% in August of 2021 over the previous month, data from Statistics Canada showed.

Core consumer prices in the country increased 3.5% in August over the same month in the previous year.

Another report from Statistics Canada said car Registrations in Canada decreased to 156049 Units in July from 168838 Units in June of 2021.