Tech Sector Lifts TSX Higher Despite Energy Weakness

(RTTNews) - After a weak start and a further drop, the Canadian market recovered gradually Tuesday morning, thanks to strong buying in technology, consumer, communications and real estate sector stocks. Energy and materials stocks showed weakness, weighed down by lower commodity prices.

Investors reacted to corporate earnings updates and continued to assess the prospects of Iran and the U.S. making a meaningful progress in Middle East peace negotiations.

The benchmark S&P/TSX Composite Index, which dropped to 35,374.37 in early trades, was up 143.87 points or 0.4% at 35,712.01 at noon.

The Information Technology Capped Index moved up 4.8% with several prominent stocks in the sector moving up sharply. Constellation Software and Descartes Systems Group gained 6.5% and 6%, respectively.

Celestica Inc. shares jumped 5.7%. Celestica reported on Monday that it posted earnings per share of $3.68 in the second quarter of its current financial year, compared with earnings per share of $1.92 in the year-ago quarter.

Open Text Corporation, Kinaxis, Docebo Inc., Shopify, Sangoma Technologies, Computer Modelling, CGI and Enghouse Systems gained 3%-5%.

In the consumer staples sector, Alimentation Couche-Tard jumped more than 3%. Loblaw, Weston George, Saputo, Metro, Premium Brands Holdings, Maple Leaf Foods, The North West Company and Empire Company gained 1.3%-2.5%.

Consumer discretionary stocks Dollarama, Magna International, Brp Inc., Canadian Tire Corporation, Linamar Corp and Gildan Activewear moved up 1.3%-2.7%.

Communications shares Telus Corporation, Rogers Communications and BCE climbed 2.3%-3%.

Among the stocks in the real estate space, FirstService Corporation climbed nearly 4%. Altus Group, Colliers International Group, CDN Apartment, Allied Properties Real Estate Investment Trust and Boardwalk Real Estate Investment Trust gained 1.3%-3%.

In the materials sector, Aya Gold & Silver, Perpetua Resources, Iamgold, Seabridge Gold and Ssr Mining declined sharply.

Enerflex, Baytex Energy, Parex Resources, Spartan Delta Corp., International Petroleum Corporation, Vermilion Energy and Ces Energy Solutions were among the notable losers in the energy sector.

Gibson Energy gained more than 4%. The company's earnings per share for the second-quarter came in at $0.48, as against $0.37 a year ago.

TFI International surged 4.5% after reporting earnings per share of $1.85 for the second-quarter, compared with $1.34 a year ago.