TSX Moderately Higher As Energy Stocks Move Up

(RTTNews) - After a weak start and a subsequent sharp drop to lower levels, the Canadian market emerged into positive territory on Tuesday, riding on strong gains in energy and utilities sectors. Stocks from materials and communications sectors too moved higher.

Technology, consumer discretionary and healthcare stocks shed ground, while stocks from other sectors turned in a mixed performance.

The mood was a bit bearish at the start amid uncertainty surrounding U.S.-Iran talks, and concerns about inflation and economic growth following a jump in oil prices.

After U.S. President Trump's announcement on Monday about postponement of strikes on Iran's energy infrastructure by five days, Iran responded by saying that there had been no direct talks and that Trump's move was designed to lower energy prices and "buy time" for his military plans.

Oil prices rose sharply amid reports of huge explosions in Tehran and other cities, and on Iran's denial about holding talks with the U.S. to end the war.

Iran's foreign ministry said Trump's remarks were "part of efforts to reduce energy prices and buy time" for military plans.

Meanwhile, Israeli Primer Minister Benjamin Netanyahu said that the country is continuing strikes against Iran and Lebanon continue without pause.

The benchmark S&P/TSX Composite Index, which rallied to 32,116.92 from an early low of 31,572.38, was up 205.60 points or 0.65% at 32,089.41 a little while ago.

The Energy Capped Index climbed more than 3%. Athabasca Oil Corp gained about 6.1%. Kelt Exploration, Vermilion Energy, Birchcliff Energy, Tamarack Valley Energy, Peyto Exploration, Cenovus Energy, Advantage Energy, Imperial Oil, Suncor Energy, Tourmaline Oil Corporation and Enerflex moved up 3%-5.2%.

Boralex, up 9.1%, was the top gainer in the Utilities sector. Transalta Corporation surged 7.5% and Brookfield Renewable Energy gained 4%. Capital Power Corp, Northland Power, Atco and AltaGas also moved up sharply.

Transcontinental Inc. topped the list of gainers in the Materials index, surging nearly 9%. Methanex, 5N Plus, Nutrien, First Majestic Silver Corp., Silvercorp Metals, New Gold and Winpak gained 3%-7%.

Technology stocks Docebo, Constellation Software, Open Text Corporation, Kinaxis, Descartes Systems Group, Shopify, BlackBerry and CGI Inc. lost 2.5%-4%.

On the economic front, Canada's CFIB Business Barometer long-term index, which tracks 12-month forward expectations for business performance, sank to 55.8 in March, from the over three-year high of 65.3 in the previous month, a report from the Canadian Federation of Independent Business showed.

Data from Statistics Canada showed Canada's manufacturing sales likely rose 3.8% in February, following a 3% decline in January, according to preliminary estimates.