Canadian Market Slightly Higher As Energy Stocks Rally

(RTTNews) – After a positive start and a subsequent fall into negative territory, the Canadian market is modestly higher in late morning trade on Thursday, thanks largely to strong buying in the energy sector.

Healthcare and technology stocks are weak. Select financials and materials shares are up with notable gains, while stocks from rest of the sectors are turning in a mixed performance.

Investors are digesting the data on U.S. consumer price inflation released before the opening bell this morning.

The benchmark S&P/TSX Composite Index is up 85.92 points or 0.43% at 10,110.97 about half an hour before noon. Earlier, the index dropped to 19,993.39.

The Energy Capped Index is up nearly 2%. Parex Resources (PXT.TO), Birchcliff Energy (BIR.TO) and Arc Resources (ARX.TO) are up 5 to 5.7%. Peyto Exploration (PEY.TO), Nuvista Energy (NVA.TO), Tamarack Valley Energy (TVE.TO), Advantage Oil & Gas (AAV.TO), Paramount Resources (POU.TO) and Enerplus Corp (ERF.TO) are gaining 3 to 4.5%.

Healthcare stocks Cronos Group (CRON.TO) and Canopy Growth Corp (WEED.TO) are both lower by nearly 2.5%. Bausch Health Companies (BHC.TO), Tilray Inc (TLRY.TO) and Chartwell Retirement Residences (CSH.UN.TO) are down 1 to 1.6%.

Technology stocks Kinaxis Inc (KXS.TO), Coveo Solutions (CVO.TO) and Magnet Forensics (MAGT.TO) are down 6.3%, 4.3% and 4%, respectively. Lightspeed Commerce (LSPD.TO) is down 2.5% and Shopify Inc (SHOP.TO) is declining 2.2%.

Data released by the Labor Department showed U.S. consumer price index edged down by 0.1% in December after inching up by 0.1% in November. Economists had expected consumer prices to come in unchanged.

The report also showed the annual rate of consumer price growth slowed to 6.5% in December from 7.1% in November, in line with expectations. The annual growth was the slowest since October 2021.

The annual rate of core price growth slowed to 5.7% in December from 6% in November. The year-over-year growth was also in line with expectations.