Energy Boost Powers Surge in TSX

Agnico, K92 in Focus

Equities in Canada’s largest market opened higher on Monday, led by energy shares, as the last quarter of the year kicked off amid hawkish actions by central banks to tame surging inflation and investors dreading of a potential recession.

The TSX Composite burst out of the cave it was in over weekend, 263.3 points, or 1.4%, to begin the week and the month at 18,707.52.

The Canadian dollar advanced 0.5 cents to 73.03 cents U.S.

RBC upgraded New Gold to outperform from sector perform. New Gold shares popped 13 cents, or 10.6%, to $1.36.

Agnico Eagle Mines was raised to buy from neutral by Citigroup. Agnico Eagle took on a dollar, or 1.7%, to $59.36.

RBC initiated coverage for K92 Mining with a sector perform rating and price target of $9.50. K92 shares jumped 16 cents, or 2%, to $8.06.

On the economic slate, the Markit Canada Manufacturing PMI in Canada increased to 49.8 points in September from 48.7 points in August.

ON BAYSTREET

The TSX Venture Exchange piled on 4.53 points to 598.66.

All 12 TSX subgroups were positive in the first hour, with energy jumping 4.8%, materials, better by 1.9%, and gold, up 1.5%.

ON WALLSTREET

Stocks rallied Monday to start the new month and quarter, as Treasury yields eased from levels not seen roughly a decade.

The Dow Jones Industrials galloped 537.55 points, or 1.9%, to 29.263.01.

The S&P 500 resurfaced 57.83 points, or 1.6%, to 3,643.45.

The NASDAQ Composite ascended 106.14 points, or 1%, to 10,682.76.

Wall Street is coming off a tough month, with the Dow and S&P 500 notching their biggest monthly losses since March 2020. The Dow on Friday also closed below 29,000 for the first time since November 2020.

The Dow shed 8.8% in September, while the S&P 500 dipped 9.3% and NASDAQ lost 10.5%.

For the quarter, the Dow fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015. The S&P discarded 5.3%, and NASDAQ fell 4.11%, to finish their third consecutive negative quarter for the first time since 2009.

Energy stocks were the top gainers in the S&P 500 Monday morning as oil price jumped, after they’d been slumping since June. The sector was higher by 4.6%.

Marathon Oil gained about 7%. APA Corp., Devon Energy and Halliburton rose about 6% each. Diamondback Energy, Conocophillips and Occidental advanced by about 5% each.

The Institute for Supply Management said Monday that its manufacturing PMI fell to 50.9 in September from 52.8 in August — barely in expansion territory. A print below 50 indicates contraction, and one above that level points to an expansion.

Treasury prices hiked, lowering yields to 3.66% from Friday’s 3.82%. Treasury prices and yields move in opposite direction.

Oil prices gushed $4.44 to $83.93 U.S. a barrel.

Gold prices brightened $15.70 to $1,687.70 U.S. an ounce.