Canadian Market Up Firmly In Positive Territory; Materials Shares Rally

(RTTNews) - The Canadian market is up firmly in positive territory around noon on Thursday, led by gains in energy and materials shares.

The undertone is quite firm amid easing fears of a U.S. debt default, and encouraging Chinese factory activity.

The U.S. House of Representatives approved a debt ceiling and budget cuts package on Wednesday. The bill now heads to the Senate, with passage expected by the weekend.

The benchmark S&P/TSX Composite Index is up 124.67 points or 0.64% at 19,696.91 a few minutes past noon.

The Materials Capped Index is surging nearly 2.5%. Filo Mining Corp (FIL.TO) is rising 8.7%. Fortuna Silver Mines (FVI.TO), Osisko Mining (OSK.TO), Algoma Steel Group (ASTL.TO), Equinox Gold Corp (EQX.TO), Eldorado Gold (ELD.TO), Iamgold Corp (IMG.TO), Ivanhoe Mines (IVN.TO), MAG Silver Corp (MAG.TO), Teck Resources (TECK.B.TO) and K92 Mining Inc (KNT.TO) are up 4 to 6.5%.

Among energy stocks, Precision Drilling Corp (PD.TO), Baytex Energy (BTE.TO), MEG Energy (MEG.TO), Crescent Point Energy (CPG.TO), PrairieSky Royalty (PSK.TO) and Cenovus Energy (CVE.TO) are gaining 2 to 4%.

Healthcare stocks Tilray Inc (TLRY.TO) and Canopy Growth Corp (WEED.TO) are up 5.8% and 2.7%, respectively. Sienna Senior Living Inc (SIA.TO) is gaining 1.7%.

Consumer discretionary stocks Linamar Corp (LNR.TO) and Restaurant Brands International (QSR.TO) are gaining 2.8% and 1.7%, respectively.

BRP Inc. (DOO.TO) reported first-quarter net profit of C$154.5 million, or C$1.92 per share, compared with net profit of C$121 million, or C$1.46 per share, in last year's first quarter. The stock is down by about 1.7%.

Laurentian Bank of Canada (LB.TO) is rising more than 4.5% after the bank reported net income of $49.3 million and diluted earnings per share of $1.11 for the second quarter of 2023, compared with $59.5 million and $1.34 for the second quarter of 2022.

Meanwhile, data from Markit Economics showed the S&P Global Canada Manufacturing PMI fell to 49 in May, slipping into the contractionary territory following the near stagnation of 50.2 in the previous month.