The Canadian stock market experienced a mild decline by early afternoon on Tuesday, having initially risen in the session due to strong performances in the energy and materials sectors, buoyed by firm commodity prices. The market, however, faces pressure from ongoing trade war concerns and heightened political uncertainty following the resignation of Prime Minister Justin Trudeau.
The benchmark S&P/TSX Composite Index initially rose to 25,197.00 after starting the day at 25,059.89. However, as of just after noon, it slipped by 7.05 points, or 0.03%, to 24,992.74.
In the energy sector, the Energy Capped Index saw a 1.4% increase. Precision Drilling Corporation (PD.TO) is leading with a gain of over 5%, followed by Headwater Exploration (HWX.TO) at a 4.5% increase. Parex Resources (PXT.TO), Suncor Energy (SU.TO), Veren Inc (VRN.TO), and Imperial Oil (IMO.TO) have all recorded gains between 3% and 4%. Meanwhile, MEG Energy (MEG.TO) and Vermilion Energy (VET.TO) have risen by 2.75% and 1.3%, respectively.
The Materials Capped Index has also advanced, up by 1.5%. Companies such as Oceanagold Corp (OGC.TO), Novagold (NG.TO), First Majestic Silver Corp (AG.TO), Fortuna Silver Corp (FVI.TO), New Gold (NGD.TO), Aya Gold & Silver (AYA.TO), Iamgold Corp (IMG.TO), Equinox Gold Corp (EQX.TO), Kinross Gold (K.TO), Centerra Gold (CG.TO), and Agnico Eagle Mines (AEM.TO) are experiencing gains ranging from 3% to 4.2%.
In the communications sector, Cogeco Communications (CCA.TO) and Quebecor Inc (QBR.TO) have risen by 4% and 2.1%, respectively, while Rogers Communications (RCI.B.TO) and Telus Corp (T.TO) have seen increases of 1.1% and 1%, respectively.
Conversely, GFL Environmental Inc. (GFL.TO) displays a decline of 1.7% following the announcement of its plan to sell its environmental services division to Apollo Global Management and BC Partners in a transaction valued at CAD 8 billion.
In broader economic news, Statistics Canada reports that the nation's trade deficit has narrowed to CAD 0.32 billion in November, a reduction from the revised CAD 0.54 billion gap recorded in the previous month. Exports rose by 2.2% to CAD 66.1 billion, while imports increased by 1.8% to CAD 66.4 billion. Additionally, a report from the Ivey Business School indicates that the Ivey Purchasing Managers Index reached 54.7 in December, improving from 52.3 in November.
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