TSX Ends On Firm Note As Energy Stocks Surge Higher On Firm Oil Prices

(RTTNews) - The Canadian stock market ended on a strong note on Monday, lifted by gains in energy shares after crude oil prices rose sharply on rising optimism about outlook for energy demand.

Shares from materials, healthcare, consumer discretionary and real estate sectors were the other prominent gainers. A few stocks from financial, industrials and telecom sectors too posted impressive gains.

Firm crude oil and bullion prices and optimism about strong economic recovery outweighed concerns about possibility of the Federal Reserve tapering its asset buying program sometime sooner than expected.

The benchmark S&P/TSX Composite Index ended up by 156.77 points or 0.78% at 20,156.36, after climbing to a high of 20,222.55.

The Capped Energy Index climbed 4.66%, as several stocks in the section rose sharply after crude oil prices gained more than 2%. Crescent Point Energy (CPG.TO) soared nearly 9%, Enerplus Corp (ERF.TO) gained 8.3%, MEG Energy (MEG.TO) ended nearly 8% up and Vermilion Energy (VET.TO) gained 7.35%. Whitecap Resources (WCP.TO), Arc Resources (ARX.TO), PrairieSky Royalty (PSK.TO) and Canadian Natural Resources (CNQ.TO) also rose sharply.

Among materials shares, Turquoise Hill Resources (TRQ.TO), Labrador Iron Ore Royalty (LIF.TO), Ero Copper (ERO.TO), Teck Resources (TECK.B.TO), Kirkland Lake Gold (KL.TO), Yamana Gold (YRI.TO) and Canfor Corp (CFP.TO) gained 2 to 4.5%.

Healthcare stocks Aurinia Pharmaceuticals (AUP.TO), Trillium Therapeutics (TRIL.TO), Tilray Inc (TLRY.TO) and Aurora Cannabis (ACB.TO) gained 2.7 to 3.3%.

Consumer discretionary stocks Linamar Corp (LNR.TO), Magna International (MG.TO), Martinrea International (MRE.TO) and Spin Master Corp (TOY.TO) gained 2.3 to 4%.

Real estate stocks Artis Real Estate Investment (AX.UN.TO), Boardwalk Real Estate Investment (BEI.UN.TO), Cominar R.E (CUF.UN.TO) and Altus Group (AIF.TO) gained 2.5 to 5.2%.

Stocks showed a strong move back to the upside during trading on Friday, partly offsetting the weakness that was seen last week. The major averages all moved notably higher, with the Dow showing a particularly strong upward move.

The strong uptick on Wall Street contributed as well to the positive mood in the Canadian market. All the three major U.S. averages closed with impressive gains today. The Dow spiked 1.8%, the Nasdaq advanced 0.8% and the S&P 500 jumped 1.4%.

The U.S. market had tumbled on all the five sessions last week amid concerns about the outlook for monetary policy after the Federal Reserve latest projections called for two interest rates hikes in 2023.

The major European markets also closed notably higher on Monday, while Asian stocks ended mostly lower.