Canadian market edges higher on Health Care, Industrials

By on May 2, 2017


Canada's main market moved up on Tuesday, as strong gains in Health Care and Industrial sectors outpaced declines in Energy and Financial stocks. (Photo: Rodrigo Paoletti/Facebook)
Canada’s main market moved up on Tuesday, as strong gains in Health Care and Industrial sectors outpaced declines in Energy and Financial stocks. (Photo: Rodrigo Paoletti/Facebook)

TORONTO—Canada’s main market moved up on Tuesday, as strong gains in Health Care and Industrial sectors outpaced declines in Energy and Financial stocks.

The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite climbed 44.02 points, or 0.28 percent to close the day at 15,619.65 points. Seven of the 10 sub-groups finished the session higher.

Health Care and Industrial groups provided the biggest spark, rising 1.71 percent and 1.03 percent, respectively.

Industrials received a boost after shares of plane and rail maker Bombardier Inc soared 4.90 percent to 2.14 Canadian dollars (1.56 U.S. dollars). Quebec-based CAE Inc also had an impact, gaining 2.77 percent to close at 21.51 Canadian dollars (15.68 U.S. dollars) after the company had secured aviation training solution contracts valued at more than 375 million Canadian dollars.

Shares of Canada’s two largest railway firms, Canadian National and Canadian Pacific, also provided an uplift, rising 1.33 percent and 1.23 percent, each.

Pulling the group down were the country’s largest airline firms. Calgary-based WestJet shares dipped 3.24 percent to 22.10 Canadian dollars (16.11 U.S. dollars) after net earnings in the first quarter fell 44.9 percent to 48.3 million Canadian dollars (about 35.2 million U.S. dollars). Meanwhile, shares of rival Air Canada fell 1.16 percent to 12.75 Canadian dollars (9.29 U.S. dollars).

The remaining groups to finish Tuesday’s session ahead were: Consumer Staples (0.87 percent), Telecommunications (0.77 percent), Information Technology (0.69 percent), Consumer Discretionary (0.51 percent), and Utilities (0.44 percent).

Energy topped the laggard groups during the session, retreating 0.42 percent after crude oil continued its recent slump. A barrel of Brent for July delivery fell 1.90 percent, or 0.98 U.S. dollar to close at 50.47. Over the last two weeks, the benchmark crude oil is down a combined 8.83 percent.

Subsequently, shares of Calgary-based energy firms ARC Resources Ltd and Crescent Point Energy Corp slipped 2.41 percent and 1.45 percent, respectively.

Cenovus Energy Inc and Canadian Natural Resources were also heavily traded, ultimately declining 0.74 percent and 0.57 percent, each. The one bright side within the group was Suncor Energy Inc gaining 0.58 percent to close at 43.14 Canadian dollars (31.44 U.S. dollars) a share.

Rounding out the groups to finish in negative territory were Financial and Materials, ticking down 0.20 percent and 0.09 percent, each.

Financial stocks experienced marginal changes for a third straight day as shares of Canada’s largest alternative mortgage lending firm Home Capital Group Inc continued to see-saw following a violate week of trading.

On Tuesday, shares of the Toronto-based firm jumped 11.35 percent to 7.75 Canadian dollars (5.65 U.S. dollars) after a Reuters report suggested multiple firms were weighing the option of buying out the company.

Dragging the group down were four of the country’ s top five banks. Top-ranked Royal Bank of Canada retreated 0.66 percent, while No. 2 Toronto-Dominion Bank fell 0.89 percent. Rounding out the list were No. 4 Bank of Montreal and No. 5 Canadian Imperial Bank of Commerce with respective falls of 0.54 percent and 0.41 percent.

The Canadian dollar retreated 0.32 cent to a 14-month low to 0.7289 U.S. dollar.