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CANADA STOCKS-TSX rises as financial stocks extend recovery

Published 2016-02-16, 04:59 p/m
© Reuters.  CANADA STOCKS-TSX rises as financial stocks extend recovery
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(Adds portfolio manager comments, details on ECB, Brookfield
Asset Management; updates prices)
* TSX ends up 173.74 points, or 1.4 percent, at 12,554.98
* Nine of TSX's 10 main groups rise

By Fergal Smith
TORONTO, Feb 16 (Reuters) - Canada's main stock index rose
on Tuesday to a one-week high as financials gained for a second
straight session, while dashed hopes of an oil supply cut
restrained gains for energy stocks and gold miners dragged.
The index extended a recovery from a three-week low on
Thursday as concern about global financial stocks lessened.
Canada's stock market was closed on Monday for a public holiday.
Financials have taken confidence from comments by European
Central Bank President Mario Draghi, while there is a sense that
oil prices may be stabilizing, said Subodh Kumar, chief
investment strategist at Subodh Kumar & Associates.
"This is still very much a momentum market worldwide," he
said.
Draghi said on Monday that the ECB is ready to ease policy
further in March.
The most influential movers on the index were Royal Bank of
Canada RY.TO , which rose 2.1 percent to C$69.41, and
Toronto-Dominion Bank TD.TO , which advanced 2.1 percent to
C$51.88.
Brookfield Asset Management Inc BAMa.TO rose 3.7 percent
to C$41.25. Australian ports and rail giant Asciano Ltd AIO.AX
formally dumped an A$8.9 billion ($6.4 billion) buyout from the
company after it failed to match a higher offer from a local
rival.
Element Financial Corp EFN.TO rose 6.3 percent to C$13.28
a share after it said it will split its fleet management
business and its vendor and commercial financing business,
creating two publicly traded companies.
The overall financial services group rose 2.1 percent.
Restaurant Brands International Inc QSR.TO , the owner of
Burger King and the Tim Hortons coffee and doughnut chain,
jumped 5.9 percent to C$46.91 after its earnings beat
expectations.
Energy stocks advanced 1 percent, restrained by a pullback
in crude oil prices after Russia and Saudi Arabia dashed
expectations of an outright supply cut.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 173.74 points, or 1.4 percent, at 12,554.98.
It touched its highest level since Feb. 8 at 12,561.31.
Nine of the index's 10 main groups ended higher.
Nonetheless, "there is still a lot of concern about global
growth," said Kumar. "I don't think the corrective phase in the
market is over yet."
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 2.3 percent.
Barrick Gold Corp ABX.TO declined 5.0 percent to C$16.11,
while Goldcorp Inc G.TO was down 5.3 percent at C$20.55.
Gold fell on dampened safe-haven demand, taking it further
below last week's one-year high. GOL/

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