Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

CANADA STOCKS-TSX jumps 1 pct as surging oil boost energy companies

Published 2016-04-08, 04:49 p/m
CANADA STOCKS-TSX jumps 1 pct as surging oil boost energy companies
CL
-
BHC
-
GSPTSE
-
CNQ
-
TRP
-
SU
-
ENB
-

(Adds strategist comment, details; updates prices)
* TSX ends up 130.29 points, or 0.98 percent, at 13,396.73
* Seven of the TSX's 10 main groups rise
* Energy sector gains 2.7 pct; index down 0.3 pct on week

By Alastair Sharp
TORONTO, April 8 (Reuters) - Canada's main stock index
jumped almost 1 percent on Friday, led by gains for energy
companies as crude oil prices surged, helping the index eclipse
most of the losses sustained earlier in the week.
Unexpectedly robust jobs data added to evidence of a pick-up
in the domestic economy, aiding investor confidence, although
the boost from higher crude was seen as the dominant catalyst.
"In my view it has much less to do with the labor force data
and much more to do with the gains in the price of oil today,
which have been quite substantial," said Philip Petursson, chief
investment strategist at Manulife Investments.
The energy group climbed 2.7 percent and oil prices jumped 6
percent, as drawdowns in U.S. stockpiles fed hopes that
punishing global oversupply may be near a tipping point. O/R
"We're starting to see some support for higher oil prices
over the next six months or so, coming out of the U.S.
production data that again this week showed a drop," Petursson
said.
He said oil's gains could be capped if prices get to $55 or
$60 a barrel, which could prompt the return of some of that U.S.
production. U.S. crude CLc1 settled at $39.72 a barrel on
Friday for its biggest weekly gain in a month.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 130.29 points, or 0.98 percent, at 13,396.73.
It slipped 0.3 percent on the week.
Among the most influential gainers were Canadian Natural
Resources Ltd CNQ.TO , which jumped 4.7 percent to C$35.97, and
Suncor Energy Inc SU.TO , up 1.2 percent to C$35.82.
Pipeline companies also gained, with Enbridge Inc ENB.TO
adding 2.3 percent to C$50.68 and TransCanada Corp TRP.TO
rising 1.9 percent to C$50.29.
Canada added far more jobs than expected last month as
service sector hiring accelerated and the unemployment rate fell
from a three-year high, data showed.
The index's financials sector gained 1.0 percent while the
materials group, which includes precious and base metals miners
and fertilizer companies, added 1.9 percent.
Valeant Pharmaceutical International Inc VRX.TO was one of
the heaviest weights on the index, declining 6.1 percent to
C$43.86 after sharp gains earlier in the week. Valeant said on
Thursday its lenders had given the company an extra month to
file its annual report, offering breathing room as it tries to
win back investors.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.