The Canadian market experienced a modest uptick by early afternoon on Monday, rebounding from initial declines due to significant gains in healthcare, technology, and energy stocks. Investors are proceeding with caution as they evaluate the latest GDP and producer prices data from the nation.
As of around 12:30 p.m., the benchmark S&P/TSX Composite Index rose by 61.10 points, or 0.25%, to 24,660.58. The index, which had opened slightly lower at 24,566.27, dipped to 24,510.50 before climbing into positive territory.
A preliminary estimate indicated that Canada's GDP contracted by 0.1% in November, marking the first decline in eleven months. In contrast, the GDP increased by 0.3% in October—an upward revision from the initial flash estimate of a 0.1% rise—following a revised 0.2% growth in September.
Industrial product prices in Canada increased by 0.6% month-over-month in November, following a 1.2% rise in October. Year-over-year, producer prices rose by 2.2% in November, compared to a 1.1% increase in the previous month. Additionally, raw materials prices increased by 2% in November, rebounding from a 2.8% decline in October.
Separate data from Statistics Canada suggested that manufacturing sales in Canada likely rose by 0.5% month-over-month in November, following a 2.1% increase in October.
Among individual stocks, Tilray Inc. (TLRY.TO) saw a significant rise of over 10%, while Bausch Health Companies (BHC.TO) gained nearly 1%. Birchcliff Energy (BIR.TO), up 7.3%, led the gains in the Energy Capped Index. Paramount Resources (POU.TO) rose by nearly 5%, and Kelt Exploration (KEL.TO) increased by 4%. Meanwhile, International Petroleum Corp (IPCO.TO), Nuvista Energy (NVA.TO), Baytex Energy (BTE.TO), Arc Resources (ARX.TO), Advantage Oil & Gas (AAV.TO), Peyto Exploration (PEY.TO), Veren (VRN.TO), and Topaz Energy (TPZ.TO) posted gains ranging from 2.5% to 3.6%.
In the technology sector, Celestica Inc. (CLS.TO) increased by 3%, while Open Text Corp (OTEX.TO), Computer Modelling Group (CMG.TO), and Constellation Software (CSU.TO) recorded gains between 1% and 1.4%.
Meanwhile, Payfare Inc. (PAY.TO) surged nearly 80% after announcing it would be acquired by 1517452 B.C. Ltd., an affiliate of Fiserv, Inc., for C$4.00 in cash per share, totaling approximately C$201.5 million.
