Canadian stocks rose the most in six months on Monday after pharmaceutical company Pfizer Inc. (NYSE:PFE) announced that its Covid-19 vaccine prevented more than 90% of infections in a large-scale clinical trial.
The S&P/TSX Composite Index closed 1.2% higher in Toronto on Monday and was up as much as 2.7% in intra-day trading. The index closed Monday session at its highest level since October 15.
The rally was fueled by investors flooding into cyclical stocks, including energy, which as a group climbed almost 10%. Suncor Energy (TSX:SU) and Canadian Natural Resources (TSX:CNQ), the largest Canadian oil producers, rose more than 20% each on Monday.
Real estate and financial stocks, two of the worst-performing sectors this year, also had a big day, with each rising more than 4%.
Some of the positive momentum was blunted by a selloff in technology stocks such as Shopify, which have benefited from stay-at-home orders during the pandemic and gold miners. The loonie rose 0.3% to $1.3010 per U.S. dollar.
Air Canada (TSX:AC) soared 29% despite missing operating revenue estimates for the third quarter as the prospect for a vaccine improved sentiment toward travel. The airline said it expects flight capacity in the fourth quarter will be 75% lower than in the same quarter last year.
The Government of Canada said Sunday it will begin discussions on providing financial support to airlines, airports and the aerospace sector.
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