TSX Ends On Firm Note As Energy, Materials Shares Post Strong Gains

(RTTNews) - The Canadian market ended on a firm note on Thursday, led by gains in energy, materials and utilities sectors. Slightly easing concerns about inflation and hopes that the Federal Reserve will announce an interest-rate cut in the second quarter aided sentiment.

In addition to the data on U.S. consumer price growth, investors also digested Canadian GDP data.

The benchmark S&P/TSX Composite Index ended with a gain of 119.84 points or 0.56% at 21,363.61.

The Capped Energy Index climbed 1.87%. Canadian Natural Resources (CNQ.TO), the top gainer in the index, advanced 5.15% on strong results. The company reported net earnings of $2.63 billion for the quarter ended December 31, 2023, compared to net earnings of $2.34 billion in the year-ago quarter.

Crescent Point Energy (CPG.TO) gained about 2.1% after reporting net income of C$951.2 million or C$1.70 per share for the fourth quarter, compared with net loss of C$498.1 million or C$0.90 per share in the same quarter a year ago.

Athabasca Oil Corp (ATH.TO) gained nearly 2%. The company reported fourth-quarter net income of $27.5 million, compared to $489.66 million in the year-ago quarter.

MEG Energy (MEG.TO) surged nearly 3.5%. Secure Energy Services (SES.TO), Suncor Energy (SU.TO), Nuvista Energy (NV.TO), Birchcliff Energy (BIR.TO), Vermilion Energy (VET.TO) and Tourmaline Oil Corp (TOU.TO) gained 1 to 2%.

In the materials sector, Lithium Americas Corp (LAC.TO) soared 15.7%. Oceanagold (OGC.TO) and Osisko Gold Royalties (OR.TO) climbed 7.1% and 6.1%, respectively.

Novagold (NG.TO), Sandstorm Gold (SSL.TO), Lithium Americas Argentina Corp (LAAC.TO) and New Gold (NGD.TO) gained 3.75 to 5.5%.

Boralex Inc (BLX.TO), Superior Plus (SPB.TO), Innergex Renewable Energy (INE.TO), Brookfield Infra Partners (BIP.UN.TO), Emera Incorporate

Toronto-Dominion Bank (TD.TO) gained 1.1%. The bank reported net income of C$2.82 billion or C$1.55 per share for the first quarter, higher than C$1.58 billion or C$0.82 per share in the same quarter a year ago.

Canadian Imperial Bank of Commerce (CM.TO) climbed 2.2%. The bank reported first-quarter profit of $1.73 billion or $1.77 per diluted share, up from $433 million of $0.39 per diluted share in the first quarter of the previous year.

Stella-Jones Inc (SJ.TO) plunged 7.4% despite reporting higher net profits. The company reported fourth-quarter net income of $56 million, compared to $36 million in the year-ago quarter. d (EMA.TO) and Algonquin Power & Utilities Corp (AQN.TO) were among gainers in the utilties section.

Data from Statistics Canada showed the Canadian economy expanded by 0.2% in the fourth quarter of 2023, recovering from a revised 0.1% contraction in the third quarter.

The Canadian economy likely grew by 0.4% in January 2024, according to preliminary estimates. In December, the GDP was flat, below prelimiary estimates of a 0.3% advance.

A report from the Canadian Federation of Independent Business showed CFIB's Business Barometer in Canada rose by 6.1 points to 54.9 in February, from 48.8 in January. The index reflects 12-month forward expectations for business performance in the country.

Data from the Commerce Department that showed consumer price growth in the U.S. slowed to 2.4% in January from 2.6% in December. The annual rate of core consumer price growth also slowed to 2.8% in January from 2.9% in December, in line with estimates.

The slowdown in consumer price growth is likely to generate optimism about the outlook for interest rates, as Fed officials have said they need greater confidence is slowing before they consider cutting rates.