Toronto market gives up early gains as oil price rise boosts energy stock prices

Toronto market gives up early gains as oil price rise boosts energy stock prices

Toronto market gives up early gains as oil price rise boosts energy stock prices

TORONTO — Canada’s main stock index gave up early triple-digit gains on Tuesday as energy remained the sector with strong gains by the end of the trading day.

The S&P/TSX composite index closed down 20.70 points at 16,162.96, despite an 8.92 per cent rise in energy.

Benchmark U.S. West Texas Intermediate oil rose by US$1.00 per barrel to US$41.92 as investors welcomed news that European leaders have agreed on a budget and coronavirus relief fund worth more than C$2.7 trillion.

“In Canada, it’s certainly a strong day in energy. The price of oil is up quite a bit,” said Anish Chopra, managing director with Portfolio Management Corp.

“There’s just more stimulus coming into the economy, right? So when you have the deal in Europe, it supports the demand side of the supply-demand balance. And oil is a global commodity.”

Economy watchers were also buoyed by a Statistics Canada report showing retail sales in Canada rebounded sharply in May and June, all but wiping out the deep declines of the COVID-19 lockdowns.

Sales surged 18.7 per cent in May, a sharp reversal from the record 26.7 per cent nosedive in April — the lowest point in the COVID-19 crisis, when efforts to contain the pandemic had forced mass closures throughout the sector.

StatsCan also released a preliminary estimate that sales jumped an additional 24.5 per cent in June.

In Toronto, Canadian Natural Resources Ltd. gained 10.5 per cent to $25.53 and fellow major oil producer Suncor Energy Inc., which reports second-quarter results Wednesday, was up 8.1 per cent to $24.48.

The Canadian dollar, which often mirrors oil prices, traded for 74.37 cents US compared with 73.84 cents US on Monday.

The financial sector eked out a 0.45 per cent gain led by the Royal Bank of Canada’s 0.8 per cent price rise.

The materials sector rose 0.7 per cent on continued strength in gold prices. The August gold contract was up US$26.50 to US$1,843.90 an ounce, marking another nine-year high.

Iamgold Corp. was up 21 cents to $6.43 after the company announced it will go ahead with its US$1.3-billion Cote Gold mine in northern Ontario. Construction of the project, which is 30 per cent owned by Sumitomo Metal Mining Co., is to start this summer and it is to open in the second half of 2023.

The sector that lost the most on Tuesday was technology — down 2.83 per cent after a strong day Monday. The drop was led by Shopify Inc. with a 6.4 per cent fall to $1,280.80.

South of the border, U.S. markets rose on strength in traditional sectors that outpaced weakness in technology stocks, although a late day stumble erased much of the gain.

Hope for more economic aid from the government, following Europe’s example, helped put investors in a buying mood Tuesday, said Kristina Hooper, chief global market strategist for Invesco.

“The U.S. does not have the safety net that Europe has,” she said. “This is an environment in which there is going to be a need for more fiscal stimulus or you could see real hit to consumers.”

In New York, the Dow Jones industrial average was up 159.53 points at 26,840.40, while the S&P 500 index was up 5.46 points at 3,257.30. Meanwhile, the Nasdaq composite was down 86.73 points at 10,680.36 on technology stock weakness.

Elsewhere in commodities, the August natural gas contract was up 3.4 cents at US$1.68 per mmBTU on Tuesday. The September copper contract was up 4.25 cents at nearly US$2.96 a pound.

By Dan Healing in Calgary

— With files from The Associated Press

This report by The Canadian Press was first published July 21, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:CNQ, TSX:SU, TSX;RY, TSX:IMG)

The Canadian Press

Business

Just Posted

File Photo
Blackfalds RCMP seeking suspects in traffic collision

RCMP are asking the public for help identifing two suspects wanted for multiple offences

Maskwacis Pride crosswalk (Left to right): Montana First Nation Councillor Reggie Rabbit, Samson Cree Nation Councillor Louise Omeasoo, Samson Cree Nation Councillor Katherine Swampy, Samson Cree Nation Councillor Shannon Buffalo, Samson Cree Nation Chief Vern Saddleback.
Pride in Maskwacis

The 4th inaugural Maskwacis Pride crosswalk painting took place on Saturday 12, 2020.

Alberta Premier Jason Kenney arrives at the 2021 budget in Edmonton on Thursday, Feb. 25, 2021.THE CANADIAN PRESS/Jason Franson
Alberta launches COVID vaccine lottery with million-dollar prizes to encourage uptake

The premier says the lottery will offer three prizes worth $1 million a piece, as well as other prizes

The City of Red Deer sits at 249 active cases of the virus, after hitting a peak of 565 active cases on Feb. 22. (Black Press file image)
Red Deer down to 119 active COVID-19 cases

Province identifies 179 new cases Saturday

Member Terry Parsons’ custom built track vehicle.
Forestburg’s Area 53 Racetrack gears up for action-packed season

Site will also host a portion of the ‘Miles of Mayhem’ event in July

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

RCMP Const. Shelby Patton is shown in this undated handout photo. RCMP say that Patton was hit by an allegedly stolen truck that he had pulled over on Saturday morning in Wolseley, east of Regina. THE CANADIAN PRESS/HO, RCMP
Pair charged in Saskatchewan Mountie’s death make first court appearance

Const. Shelby Patton was hit by an allegedly stolen truck that he had pulled over Saturday morning

David and Collet Stephan leave for a break during an appeal hearing in Calgary on Thursday, March 9, 2017. THE CANADIAN PRESS/Todd Korol
Appeal Court rejects stay for Alberta couple facing third trial in son’s death

Pair accused in their earlier trials of not seeking medical attention for their son sooner

Calgary Stampeders’ Jerome Messam leaps over a tackle during second half CFL western semifinal football action in Calgary, Sunday, Nov. 15, 2015.THE CANADIAN PRESS/Jeff McIntosh
CFL football will be played this summer in Canada

Governors vote unanimously in favour to start the ‘21 campaign on Aug. 5

Citizenship Minister Marco Mendicino holds a press conference in Ottawa on Thursday, Nov. 12, 2020. The federal government is announcing that Indigenous people can now apply to reclaim their names on passports and other government documents. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous people can now reclaim traditional names on their passports and other ID

Announcement applies to all individuals of First Nations, Inuit and Métis background

This undated photo provided by Girl Scouts of New Mexico Trails shows a scout donating cookies to firefighters in Rio Rancho, New Mexico, as part of the Hometown Heroes program. As the coronavirus pandemic wore into the spring selling season, many Girl Scout troops nixed their traditional cookie booths for safety reasons. That resulted in millions of boxes of unsold cookies. (Girl Scouts of New Mexico Trails via AP)
Thinner Mints: Girl Scouts have millions of unsold cookies

Since majority of cookies are sold in-person, pandemic made the shortfall expected

In this artist’s sketch, Nathaniel Veltman makes a video court appearance in London, Ont., on June 10, 2021 as Justice of the Peace Robert Seneshen (top left) and lawyer Alayna Jay look on. THE CANADIAN PRESS/Alexandra Newbould
Terror charges laid against London attack suspect

Crown says Nathaniel Veltman’s four counts of first-degree murder constitute an act of terrorism

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

Most Read