TSX Ends On Strong Note For 2nd Straight Session

(RTTNews) - The Canadian stock market ended on a bright note on Monday, extending recent gains, amid easing concerns about U.S.-China trade dispute and on hopes global central banks will step up stimulus to prevent an economic recession.

Energy stocks gained significant ground in positive territory and drove the market up. Consumer discretionary, industrial and information technology shares were the other prominent gainers. Financial, utilities and real estate sections too saw good buying today.

Materials and healthcare shares turned in a mixed performance.

The benchmark S&P/TSX Composite Index ended up 154.26 points, or 0.96%, at 16,304.05, after rising to a high of 16,321.34.

On Friday, the index ended up 137.26 points, or 0.86%, at 16,149.79, after settling at its lowest closing level in five months a session earlier.

The Capped Energy Index rose nearly 2.5%. Precision Drilling Corp. (PD.TO), the biggest gainer in the index, soared as much as 18%. 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) gained more than 5% lifted by an announcement from the company that it will resume full production at its White Rose field, which was shut down last November after an oil spill.

Ensign Energy Services (ESI.TO), Encana Corp. (ECA.TO), Kelt Exploration (KEL.TO), Whitecap Resources (WCP.TO) and Parex Resources (PXT.TO) gained 3.5 to 7%.

Baytex Energy (BTE.TO), Seven Generations Energy (VII.TO), Crescent Point Energy (CPG.TO), ARC Resources (ARX.TO), PrairieSky Royalty (PSK.TO), Vermilion Energy (VET.TO) and Suncor Energy (SU.TO) also rose sharply.

In the consumer discretionary space, Hudsons Bay Company (HBC.TO) gained more than 7.5% after private equity firm Catalyst Capital Group Inc. bought a 10% stake in Hudson's through a previously announced tender offer as part of its efforts to block a proposed takeover by the retailer's chairman.

Canada Goose Holdings (GOOS.TO), Brp Inc. (DOO.TO), Dollarama Inc. (DOL.TO), Linamar Corporation (LNR.TO), Stars Group Inc. (TSGI.TO), Magna International (MG.TO) and Restaurant Brands International (QSR.TO) ended higher by 1 to 3%.

Among information technology stocks, Sierra Wireless (SW.TO) rallied 4.7%. Quarterhill (QTRH.TO), Enghouse Systems (ENGH.TO) and Photon Control (PHO.TO) gained 2.2 to 2.8%, while BlackBerry (BB.TO), Descartes Systems Group (DSG.TO), CGI Group (GIB.A.TO), Open Text Corporation (OTEX.TO) and Celestica Inc. (CLS.TO) ended higher by 1 to 2%.

In the industrials section, Badger Daylighting (BAD.TO) gained 3.4%. SNC-Lavalin (SNC.TO), Bombardier (BBD.B.TO), Mullen Group (MTL.TO), WSP Global (WSP.TO), Canadian Pacific Railway (CP.TO) and Canadian National Railway (CNR.TO) also ended with strong gains.

In the banking space, CDN Western Bank (CWB.TO) moved up 5.1%. Bank of Nova Scotia (BNS.TO), Laurentian Bank (LB.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank of Commerce (CM.TO), Toronto-Dominion Bank (TD.TO) and Royal Bank of Canada (RY.TO) gained 0.7 to 1.1%.

U.S. stocks moved significantly higher, extending gains scored in the previous two sessions. The Dow ended up 1%, while the Nasdaq and the S&P 500 gained 1.4% and 1.2%, respectively.

The strength on Wall Street came amid a continued rebound in bond yields on optimism about new global stimulus. Interest rate reforms in China and news that President Donald Trump's administration is once again delaying restrictions on Chinese tech giant Huawei also generated buying interest.

European markets ended with strong gains and most of the markets across the Asia-Pacific region too closed on a positive note.

In commodities, West Texas Intermediate crude oil futures for September ended up $1.33, or about 2.4%, at $56.14 a barrel.

Gold futures for December ended down $12.00, or about 0.8%, at $1,511.60 an ounce.

Silver futures for September ended down $0.182, at $16.940 an ounce, while Copper futures for September settled at $2.6015 per pound, gaining $0.0065.