Canadian Market Modestly Higher; Energy Stocks Post Strong Gains

(RTTNews) - The Canadian market is modestly higher in late morning trades on Monday, led by gains in energy and consumer discretionary sectors. Shares from the rest of the sectors are turning in a mixed performance.

The mood is somewhat cautious with investors awaiting Canadian consumer and producer inflation data for clues about the outlook for interest rates.

The benchmark S&P/TSX Composite Index is up 107.75 points or 0.52% at 20,636.90 about half an hour before noon.

The Energy Capped Index is climbing up 1.5%. International Petroleum Corp (IPCO.TO), up 4.1%, is the top gainer in the Index. Shawcor (MATR.TO), Vermilion Energy (VET.TO), Canadian Natural Resources (CNQ.TO), Imperial Oil (IMO.TO), Enerplus Corp (ERF.TO), Nuvista Energy (NVA.TO), MEG Energy (MEG.TO) and Athabasca Oil Corp (ATH.TO) are gaining 2 to 3%.

Consumer discretionary stocks Dollarama Inc (DOL.TO) and Mty Food Group (MTY.TO) are up 2.8% and 2.3%, respectively. Restauran Brands International (QSR.TO) is up 2% and Pet Valu Holdings (PET.TO) is advancing 1.2%.

Among other gainers, Stelco Holdings (STLC.TO) is surging 4.5%, Cameco Corporation (CCO.TO) is up 3.6% and Methanex Corp (MX.TO) is rising 2.6%. Stella-Jones (SJ.TO) and Fairfax Financial Holdings (FFH.TO) are up 2.4% and 2.1%, respectively.

Among the losers, Dundee Precious Metals (DPM.TO) is plunging nearly 8%. The company announced that it has entered into a definitive agreement to acquire all of the shares of Osino Resources Corp. (OSI.V), a gold exploration company.

As part of the agreement, Dundee's consideration consists of C$0.775 in cash per Osino share and 0.0801 of a DPM common share per Osino share. The acquisition implies a value of C$1.55 per Osino share and a total equity value of C$287 million.

Bombardier Inc (BBD.B.TO), Brookfield Renewable Corporation (BEPC.TO), Empire Company (EMP.A.TO), Boralex (BLX.TO), Gildan Activewear (GIL.TO), Brookfield Infrastructure Corporation (BIPC.TO) and Constellation Software (CSU.TO) are down 1.5 to 3%.

On the economic front, data from Statistics Canada showed new home prices in Canada went down by 0.2% month-over-month in November, following a flat reading in October. Year-on-year, the cost of new homes fell by 0.9% in November, marking the eighth consecutive decline since November 2019.