- TSX enjoys gains amid Heavy Energy and Materials.
- Volatile oil prices keep energy stocks bullish.
- NovaGold Resources and Canopy Growth are among the top losers of the day.
Materials (+1.26%) and Heavy Energy (+2.17%) led the TSX. Energy prices were higher amid continued oil price volatility before this week’s earnings report for Canada’s energy sector.
Results for the sector should be good, with higher oil prices expected to boost free cash flow significantly in the final quarter. Cenovus Energy (TSX: CVE), which released its quarterly results before the open today, supported the energy sub-index today.
The third-largest energy company in Canada reported a more than seven-fold increase in quarterly profits, defying analyst expectations. A portion of that cash flow has also been returned to investors as the company has nearly tripled its dividend.
Additionally, Materials has benefited from Canadian resource company earnings in the first quarter of 2022, which is expected to be supported by resource growth. For example, Anglo American reported a five-fold increase in quarterly earnings on the back of a five-fold increase in quarterly earnings revealed in today’s earnings and loss report.
Among the best performers on the TSX so far are Teck and Cenovus, followed by Converge Technology Solutions Corp (TSX: CTS) (+4.91%), HudBay Minerals Inc (TSX: HBM) (+4.44%) and First Quantum Minerals (TSX: FM) (+4.46%).
The biggest losers on the TSX midday were NovaGold Resources Inc (TSX:NG) (-4.07%), Canopy Growth (TSX:WEED) (-3.18%), Stella Jones (TSX:SJ) Inc (-3.01%), Tilray (TSX:TLRY) (-2.00%) and OceanaGold Corporation (TSX:OGC) (-2.44%).
