TSX Ends Modestly Higher

(RTTNews) - The Canadian stock market shrugged off a slightly weak start and ended on a firm note on Wednesday, led by gains in energy and healthcare shares. Positive cues from European and U.S. markets amid easing concerns about Italy's budget aided sentiment.

Worries about U.S.-China trade tensions limited market's gains.

The benchmark S&P/TSX Composite Index ended up 54.82 points, or 0.34%, at 16,072.05. The index, which touched a low of 16,006.23 early on in the session, scaled a high of 16,082.26 later in the day.

The Capped Energy Index climbed up 1.9%. Imperial Oil (IMO.TO) advanced by 2.2%, Encana Corporation (ECA.TO) gained nearly 2.5%, Vermilion Energy Inc. (VET.TO) ended up 2.6%, Cenovus Energy Inc. (CVE.TO) added 3.5%, Tourmaline Oil Corp. (TOU.TO) surged up 4.1% and PrairieSky Royalty (PSK.TO) jumped 4.5%. Suncor Energy Inc. (SU.TO) and ARC Resources (ARX.TO) gained 1.35% and 1.3%, respectively.

The Capped Healthcare Index ended up 4.9%. Aurora Cannabis Inc. (ACB.TO) gained 5.2%, Bausch Health Companies Inc. (BHC.TO) climbed up 4.1%, Canopy Growth Corporation (WEED.TO) jumped 8.15% and Aphria Inc. (APH.TO) ended up 5.8%.

The Capped Information Technology Index ended up 1.1%, with Shopify Inc. (SHOP.TO) and BlackBerry (BB.TO) gaining 2.8% and 2.2%, respectively.

In the banking space, Bank of Montreal (BMO.TO) added nearly 0.5%, Canadian Imperial Bank Of Commerce (CM.TO) edged up by about 0.3% and Royal Bank of Canada (RY.TO) gained 0.2%.

The Capped Materials Index declined 0.63%. Franco-Nevada Corporation (FNV.TO), Goldcorp Inc. (G.TO) and Agnico Eagle Mines (AEM.TO) shed 2 to 3%, while Wheaton Precious Metals Corp. (WPM.TO) ended lower by 1.2%.

First Quantum Minerals (FM.TO) ended up 1.7%, CCL Industries Inc. (CCL.B.TO) gained 1.75% and Methanex Corporation (MX.TO) jumped nearly 4%.

Consumer staples stocks were mostly weak. Alimentation Couche-Tard Inc. (ATD.TO), Empire Company (EMO.TO), Cott Corporation (BCB.TO) and The North West Company Inc. (NWC.TO) ended lower by 1 to 1.4%.

InMed Pharmaceuticals Inc. (IN.TO) shares gained 2.6% after the company announced that it has entered into a research agreement with the National Research Council of Canada in Montreal, Canada, for biofermentation development and scale-up processes for cannabinoid biosynthesis in E.coli.

Largo Resources Ltd. (LGO.TO) reported record production of 2,563 tonnes of vanadium pentoxide in the third quarter of 2018, a 4% increase over the second quarter. In September, the company registered a record overall vanadium pentoxide recovery rate of 82.2%. The stock gaind 1.7%.

Aecon Group Inc. (ARE.TO) announced today that it has entered into a definitive asset purchase agreement with North American Construction Group Inc. (NOA.TO). As per the agreement, Aecon will sell to NACG substantially all of the assets related to Aecon's Contract Mining business for $199.1 million in cash. The stock moved up by about 1.85%.

Enercare Inc. (ECI.TO) has announced that it has obtained clearance under the Competition Act (Canada) in respect of the company's previously announced plan of arrangement under section 192 of the Canada Business Corporations Act with Brookfield Infrastructure and its institutional partners. The stock ended with a modest gain of about 0.6%.

Resolute Forest Products Inc. (RFP.TO) shares jumped nearly 9% after the company announced that it has entered into a definitive asset purchase agreement with New-Indy Containerboard, LLC for the sale of its Catawba, South Carolina, paper and pulp mill, for a total purchase price of about $300 million.

The U.S. market ended higher, despite paring some early gains. The Dow ended the session at a new record closing high, at 26,828.39, gaining 54.45 points, or 0.2%. The Nasdaq climbed up 0.3% and the S&P 500 edged up by 0.1%.

Upbeat economic data contributed to the early strength on Wall Street, but buying interest waned as the data also raised concerns about the outlook for interest rates.

A report from payroll processor ADP showed a much bigger than expected increase in U.S. private sector employment in the month of September. The report showed private sector employment jumped by 230,000 jobs in September after climbing by an upwardly revised 168,000 jobs in August. Economists had expected employment to increase by about 185,000 jobs compared to the addition of 163,000 jobs originally reported for the previous month.

According to a report released by the Institute for Supply Management, growth in U.S. service sector activity unexpectedly accelerated in the month of September, with the ISM non-manufacturing index climbing to 61.6 in the month, from 58.5 in August. Economists had expected the index to dip to 58.0.

European markets ended modestly higher on easing concerns over the Italian budget. The Italian newspaper Corriere della Sera reported that the government estimates a budget deficit of 2.4% of GDP for 2019, and then slash it to 2.2% for 2020.

Earlier, Asian markets ended mostly lower on Wednesday as investors fretted about Italy's budgetary spending and a controversial clause in the new U.S.-Mexico-Canada trilateral pact put the focus back on the U.S.-China tariff dispute.

In commodities, Crude oil futures for November ended up $1.18, or 1.6%, at $76.41 a barrel on the New York Mercantile Exchange.

Gold futures for December ended down $4.10, or 0.3%, at $1,202.90 an ounce.

Silver futures for December ended lower by $0.023, at $14.670 an ounce and Copper futures for December ended up $0.0275, at $2.8340 per pound.