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CANADA STOCKS-Energy, materials and financials underpin TSX rally

Published 2015-10-06, 11:55 a/m
© Reuters.  CANADA STOCKS-Energy, materials and financials underpin TSX rally
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(Adds market reaction, commodity prices, details)
* TSX up 135.11 points, or 1 percent, at 13,687.31
* Seven of the TSX's 10 main groups are down

TORONTO, Oct 6 (Reuters) - Canada's main stock index rallied
on Tuesday, with heavily weighted financials and resource stocks
carrying most of the gains on the back of higher commodity
prices.
Oil and gas stocks were bolstered by a more than 3 percent
rise in crude prices, while firmer gold prices contributed to
gains in the materials group, home to mining and other resource
companies.
The most influential mover on the index was Canadian Natural
Resources CNQ.TO , which rose 3.6 percent to C$29.20. Crescent
Point Energy CPG.TO surged 10.7 percent to C$19.50, and energy
stocks climbed 3.6 percent overall.
At 11:30 a.m. EDT (1530 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 135.11 points, or 1
percent, at 13,687.31.
Only three of the 10 main sectors - financials, energy and
materials - were in positive territory, but they account for
roughly two-thirds of the index's weight.
Advancing issues outnumbered declining ones on the TSX, for
a 1.88-to-1 ratio on the upside.
Oil prices headed for the first three-day gain in five weeks
amid signs that the world's largest crude producers might act
jointly to support prices, which have halved over the past year.
U.S. crude CLc1 was up 3.9 percent at $48.04 a barrel, while
Brent crude LCOc1 added 4.3 percent to $51.35. O/R
Barrick Gold Corp ABX.TO was a key gainer among materials,
jumping 7.6 percent to C$9.64. The sector rallied 3.8 percent.
Gold prices GCc1 rose 1.1 percent to $1,150 an ounce as
the U.S. dollar softened on the back of disappointing economic
data that could push the Federal Reserve's next rate hike
further away. GOL/
Financials, home to Canada's largest banks, rose 0.8
percent. Royal Bank of Canada RY.TO rose 1.0 percent to
C$73.28.
In corporate news, miner First Quantum Minerals FM.TO said
late on Monday that it had revised its deal with Franco-Nevada
Corp FNV.TO for its flagship copper-gold Cobre Panama project
in Central America.
Under the new terms, royalty firm Franco-Nevada will have to
pay an initial contribution of $330 million to $340 million to
First Quantum in October. Shares of First Quantum soared 19.8
percent to C$7.42.

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