The Canadian stock market concluded on a strong note on Monday, buoyed by gains in the energy sector. The day began with some uncertainty, but stocks strengthened as buying interest surged, despite relatively low trading volumes due to the forthcoming Christmas holiday season.
The S&P/TSX Composite Index, which initially dropped to 24,510.50, ultimately surged, closing with an increase of 149.50 points, or 0.61%, at 24,748.98.
Notably, healthcare stock Tilray Inc (TLRY.TO) saw a significant increase of 15.2%. In the energy sector, Birchcliff Energy (BIR.TO) rose nearly 6%, while Advantage Oil & Gas (AAV.TO), Kelt Exploration (KEL.TO), Nuvista Energy (NVA.TO), Baytex Energy (BTE.TO), International Petroleum Corp (IPCO.TO), Topaz Energy (TPZ.TO), Arc Resources (ARX.TO), Veren Inc (VRN.TO), Prairiesky Royalty (PSK.TO), and Headwater Exploration (HWX.TO) experienced gains ranging from 3% to 5.3%.
Payfare Inc (PAY.TO) shares soared by 80% following the announcement of its acquisition by 1517452 B.C. Ltd., a Fiserv, Inc. affiliate, at a cash price of C$4.00 per share, totaling approximately C$201.5 million.
Gains were also observed in Paramount Resources (POU.TO) and North American Construction Group (NOA.TO), which rose by 5.95% and 5%, respectively. Additionally, CAE Inc (CAE.TO), Celestica Inc (CLS.TO), CCL Industries (CCL.A.TO), Methanex Corporation (MX.TO), and Brookfield Infrastructure (BIPC.TO) closed with robust gains.
On the downside, Hut 8 Corp (HUT.TO) declined by 7.1%. Other notable decliners included Bausch + Lomb (BLCO.TO), Quebecor Inc (QBR.TO), BRP Inc (DOO.TO), Morguard Corporation (MRC.TO), Aritzia Inc (ATZ.TO), and Waste Connections (WCN.TO).
In economic developments, preliminary data indicated that the Canadian GDP contracted by 0.1% in November, marking the first decline in eleven months. This follows a revised 0.3% GDP growth in October, and a revised 0.2% increase in September.
Industrial product prices in Canada rose by 0.6% month-over-month in November, following a 1.2% increase in October. On an annual basis, producer prices increased by 2.2% in November, compared to a 1.1% rise in October. Concurrently, raw material prices climbed by 2% in November, rebounding from a 2.8% decline in October.
Moreover, preliminary estimates from Statistics Canada suggested that manufacturing sales in Canada likely experienced a 0.5% month-over-month increase in November, following a 2.1% rise in October.
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