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TSX hits 11-month high as energy shares jump with oil

TSX hits 11-month high as energy shares jump with oil

TORONTO: Canada’s main stock index rose on Tuesday, hitting its highest level since August, as shares in oil and gas producers jumped with higher crude prices and banking stocks also lent support.

Energy shares jumped 1.9 percent and financials added 0.75 percent, while gold miners were among the biggest weights.

The gains echoed Wall Street’s record highs, partly fueled by Alcoa getting the US earnings season off to a better-than-expected start.

At 10:29 a.m. EDT (1429 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 83.69 points, or 0.58 percent, to 14,445.57.

It rose as high as 14,470.75, its strongest since August 10, as political tensions eased in Britain and a weekend election victory by Japan’s ruling coalition paved the way for more stimulus there.

Still, Canada’s benchmark stock index will likely notch only minor gains by year-end, a Reuters poll found, as investors remain cautious about global growth, the US election in November, and whether oil prices will hold on to their recent strength.

Oil bounced off two-month lows, helped by a weaker US dollar, but an oil inventory glut and a drop in bullish bets by investors weighed on prices.

Canadian Natural Resources advanced 2.5 percent to C$40.93, Suncor Energy Inc advanced 1.6 percent to C$36.86, and Cenovus Energy advanced 2.6 percent to C$18.41.

Shares in Northland Power jumped 8.5 percent to C$24.64 after the green energy company said it was considering its strategic options as it eyes more and larger opportunities.

Canadian National Railway Co added 1.6 percent to C$79.31 and rival Canadian Pacific Railway Ltd rose 1.3 percent to C$176.73. Industrials rose 0.8 percent.

The most influential drags on the index were its gold miners, with Barrick Gold Corp down 3 percent to C$28.06, Goldcorp Inc off 1.6 percent at C$25.88, and Franco-Nevada Corp fell 2.6 percent to C$100.86.

The price of gold fell for a second day, partly due to the easing of concern about Britain’s vote last month to leave the European Union. Theresa May’s victory in the battle to be Britain’s prime minister has reduced some of the political uncertainty there.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.9 percent. It was the only one of the index’s 10 main sectors in the red in morning trade.

Copyright Reuters, 2016

Courtesy : BRecorder



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