Energy Stocks Lifting Canadian Market

(RTTNews) - The Canadian market is up firmly in positive territory around noon on Monday, extending gains to a seventh straight session.

Energy stocks are leading the market up north, with rising oil prices triggering heavy buying in the sector. Materials shares are the other prominent gainers.

Healthcare and technology stocks are weak. Real estate stocks are lower as well, while shares from the rest of the sectors are turning in a mixed performance.

The benchmark S&P/TSX Composite Index is up 144.47 points or 0.72% at 20,244.36 a few minutes before noon.

On the economic front, data released by Markit Economic showed the S&P Global Canada Manufacturing PMI dropped to 48.6 in March 2023 from a seven-month high of 52.4 in February. The latest reading indicated a renewed contraction in the country's factory sector that was the steepest since June 2020 after two consecutive months of expansion.

The Energy Capped Indexis up nearly 4.5% as energy stocks are up following Saudi Arabia and other major oil producers announcing surprise cuts.

Cenovus Energy (CVE.TO) and MEG Energy Corp (MEG.TO) are up 8% and 7.7%, respectively. Enerplus Corp (ERF.TO), Athabasca Oil Corp (ATH.TO), Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Crescent Point Energy (CPG.TO), Paramount Resources (POU.TO), Baytex Energy (BTE.TO), Imperial Oil (IMO.TO), Whitecap Resources (WCP.TO), Nuvista Energy (NVA.TO), Vermilion Energy (VET.TO) and Precision Drilling Corp (PD.TO) are gaining 3 to 6%.

The Materials Capped Index is up 2.2%. Teck Resources (TECK.A.TO) is soaring more than 14%. The company has rejected unsolicited acquisition proposal from Glencore Plc, stating rival's all-stock offer is inferior to its own planner separation.

K92 Mining Inc (KNT.TO), First Quantum Minerals (FM.TO), Filo Mining (FIL.TO), Fortuna Silver Mines (FVI.TO), Agnico Eagle Mines (AEM.TO), Eldorado Gold (ELD.TO) are up 2.5 to 4.5%.

Saputo Inc. (SAP.TO) said that it agreed to sell two fresh milk processing facilities in Laverton North, Victoria, and Erskine Park, New South Wales, to Coles Group Limited, an Australian-based supermarket, retail, and consumer services chain, in a transaction valued at approximately C$95 million or A$105 million. Saputo Inc. share are down by about 0.4%.

Sun Life Financial, Inc. (SLF.TO) announced Monday it has completed the sale of SLF of Canada UK Ltd. to Phoenix Group Holdings plc (PHNX.L). This transaction will see Sun Life UK's life and pension policies and annuity blocks for UK Clients move to Phoenix Group. Sun Life Financial is up marginally.