TSX Ends On Firm Note As Technology Stocks Move Higher

(RTTNews) - The Canadian benchmark S&P/TSX ended notably higher on Tuesday as stocks recovered after a weak start and stayed firm right till the end of the session after data showed an acceleration in Canadian manufacturing activity.

Encouraging data on manufacturing activity in the U.S. and China contributed as well to the positive sentiment in the Canadian market.

Technology stocks hogged the limelight and the Capped Information Technology Index surged up as much as 3.81%. Consumer Discretionary Index climbed 2.37% as several key stocks in that section rose sharply.

Energy and industrial shares were among the other notable gainers, while healthcare stocks were weak. Materials, financial and consumer staples shares were mostly sluggish.

The S&P/TSX Composite Index ended with a gain of 130.55 points or 0.79% at 16,644.99, the day's high. The index edged down to a low of 16,462.73 in early trades.

In the technology section, Kinaxis Inc. (KXS.TO) surged up nearly 8% and Enghouse Systems (ENGH.TO) moved up 7.85%. BlackBerry (BB.TO) climbed 7.1%.

Shopify Inc. (SHOP.TO) ended stronger by 6.7%, while Lightspeed Pos (LSPD.TO), Docebo Inc. (DCBO.TO), Absolute Software (ABT.TO), Celestica Inc. (CLS.TO), Descartes Systems Group (DSG.TO) and CGI Inc. (GIB.A.TO) gained 2 to 5.1%.

Among consumer discretionary stocks, Brp Inc. (DOO.TO) gained 5.7% and Sleep Country Canada Holdings (ZZZ.TO) moved up 4.5%, while Magna International (MG.TO), Aritzia (ATZ.TO) and Linamar Corp (LNR.TO) gained 3.5 to 4%. Martinrea International (MRE.TO) and Gildan Activewear (GIL.TO) also rose sharply.

In the energy section, Whitecap Resources (WCP.TO) rose 6.6% and Enerplus Corp (ERF.TO) gained 2.6%. Parex Resources (PXT.TO), CDN Natural Resources (CNQ.TO), MEG Energy (MEG.TO) and Suncor Energy (SU.TO) gained 1 to 1.6%.

From the industrial space, Tfi International (TFII.TO), Snc-Lavalin Group (SNC.TO), Ats Automation (ATA.TO)., Ballard Power Systems (BLDP.TO) and Mullen Group (MTL.TO) gained 2 to 3%.

Bank stocks Laurentian Bank (LB.TO), Bank of Nova Scotia (BNS.TO) and Bank of Montreal (BMO.TO) lost 2%, 1.3% and 1%, respectively. Among the gainers in the financial section, Onex Corp (ONEX.TO) climbed 4.7%, CDN Western Bank (CWB.TO) advanced 1.7% and Manulife Financial (MFC.TO) firmed up 1.1%.

In the healthcare section, Aurora Cannabis Inc. (ACB.TO) tumbled 5.6%, while Aphria Inc. (APHA.TO) and Bausch Health Companies (BHC.TO) lost 2.2% and 2.1%, respectively.

B2Gold Corp (BTO.TO), Iamgold Corp (IMG.TO), Torex Gold Resources (TXG.TO) and Eldorado Gold (ELD.TO) were among the major losers in the materials space. Canfor Corp (CFP.TO), First Quantum Minerals (FM.TO), Hudbay Minerals (HBM.TO), Norbord (OSB.TO) and Methanex Corp (MX.TO) gained significant ground in positive territory.

On the economic front, Canada's manufacturing sector activity expanded for a second consecutive month in August thanks to improvement in market conditions following reopening of businesses.

The IHS Markit Canada Manufacturing PMI rose to 55.1 in August 2020, up from 52.9 in the previous month. It was the steepest expansion in factory activity since August 2018.