Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

CANADA STOCKS-TSX hits fresh 19-month high as energy climbs

Published 2016-12-13, 05:09 p/m
© Reuters.  CANADA STOCKS-TSX hits fresh 19-month high as energy climbs
XAU/USD
-
GC
-
HG
-
CL
-
GSPTSE
-
CNQ
-
RY
-
WEED
-

(Adds portfolio manager quotes, details on cannabis company, background, updates prices)

* TSX ends up 97.57 points, or 0.64 percent, at 15,385.27

* Index posts highest close since April 24, 2015

* Eight of the TSX's 10 main groups end higher

By Fergal Smith

TORONTO, Dec 13 (Reuters) - Canada's main stock index rose to a fresh 19-month high on Tuesday, led by gains in heavyweight energy and banking stocks, while materials stocks weighed.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 97.57 points, or 0.64 percent, at 15,385.27, its highest close since April 24, 2015.

"It's just follow-through from the momentum over the last few weeks," said Patrick Blais, senior portfolio manager at Manulife Asset Management.

The index has rallied 5 percent since the U.S. election in November, helped by the prospect of U.S. economic stimulus.

"I think the market was looking for a catalyst ... a lot of momentum has been building up in the U.S. economy," Blais said.

Higher oil prices have added to recent momentum for Canada's resource-linked market after the first agreement to cut production in eight years by the Organization of the Petroleum Exporting Countries.

U.S. crude oil futures settled up 15 cents at $52.98 a barrel, building on Monday's strong rally, while the energy group jumped 1.7 percent.

Gains for the energy group came as former Texas Governor Rick Perry was chosen to head the U.S. Department of Energy. Natural Resources Ltd CNQ.TO rose 3.6 percent to C$45.85 a day after announcing the sale of its stake in the Cold Lake pipeline while maintaining access to the route to move its crude. (stock) market is not expensive" and can continue to climb so long as the Federal Reserve does not raise interest rates too aggressively, Blais said.

Investors expect the Fed to lift rates by a quarter of a percentage point at the end of its two-day policy meeting on Wednesday.

Financials, which have benefited from a recent rise in bond yields, gained 0.7 percent, with Royal Bank of Canada RY.TO up 1 percent at C$91.20.

"What's good for the oil patch is good right now for Canadian banks," who benefit from reduced risk of loans to the energy sector turning sour, said Blais.

Just two of the index's 10 main groups ended lower, with the materials group, which includes precious and base metals miners and fertilizer companies, losing 0.5 percent.

Copper prices CMCU3 declined 1.4 percent to $5,690 a tonne, while gold futures GCc1 fell 0.5 percent to $1,158.3 an ounce. MET/L GOL/

The Canadian government should regulate the production of cannabis when it is legalized for recreational use, an official panel recommended. Canopy Growth Corp CGC.TO rose 7.9 percent to C$10.79.

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.