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CANADA STOCKS-TSX firms as oil rallies; index hits nearly 7-month high

Published 2016-05-17, 05:51 p/m
© Reuters.  CANADA STOCKS-TSX firms as oil rallies; index hits nearly 7-month high
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(Adds portfolio manager quotes, updates prices)
* TSX closes up 23.61 points, or 0.17 percent, at 13,917.10
* Three of TSX's 10 main groups end higher

By Fergal Smith
TORONTO, May 17 (Reuters) - Canada's main stock touched a
nearly seven-month high on Tuesday as higher commodity prices
supported energy and mining stocks, but some gains for the index
were pared as financial and consumer stocks fell.
The energy group rallied nearly 1 percent, although some
companies are facing renewed disruption to operations from a
massive wildfire around Alberta's Fort McMurray oil sands hub.

"The general balance in the oil market ... is healthier for
these companies than the negative impact of what's happening in
Fort McMurray," said Diana Avigdor, head of trading at Barometer
Capital Management.
Oil prices rose for a second straight day, with U.S. futures
CLc1 hitting seven-month highs above $48 a barrel, on
expectations of a drawdown in U.S. crude stockpiles and a new
wildfire threat on Canadian oil supplies.
"We keep expanding our energy exposure," said Avigdor, who
added that U.S. investors have been active buying energy stocks
and that strengthening in the Canadian dollar has added to the
attractiveness of the sector for those investors.
Canadian Natural Resources CNQ.TO added 1.5 percent to
C$38.30 and pipeline operator Enbridge Inc ENB.TO rose 1.21
percent to C$52.77.
Suncor Energy Inc SU.TO advanced 0.4 percent to C$35.12
after saying it had started a staged shutdown of its base plant
in the region.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 23.61 points, or 0.17 percent, at 13,917.10.
Just three of the index's 10 main groups ended higher.
The index has rallied more than 20 percent from an almost
3-1/2-year low in January but has yet to climb back above
14,000.
The materials group, which includes precious and base metals
miners and fertilizer companies, added 1.9 percent, with Potash
Corp POT.TO gaining 3.1 percent to C$21.37.
Barrick Gold ABX.TO rallied 2.4 percent to C$24.99, while
spot gold XAU= was up 0.5 percent.
Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO surged
after it said it would make required securities filings to
Canadian regulators. Its shares rose 7.8 percent to C$37.57.

Sectors that dragged on the index included consumer staples,
which fell nearly 2 percent and financials, which dipped 0.1
percent.
Still quarterly bank earnings are expected to be "ok" when
they begin to be reported next week, said Avigdor.

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