💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

CANADA STOCKS-TSX rises to 2-week high as resource stocks rally

Published 2016-10-18, 05:05 p/m
© Reuters.  CANADA STOCKS-TSX rises to 2-week high as resource stocks rally
XAU/USD
-
OGC
-
TECK
-
GC
-
CL
-
GOLD
-
GSPTSE
-
TRP
-
TSGI
-

(Adds portfolio manager quotes and details on U.S. stock market performance and updates prices)

* TSX closes up 155.73 points, or 1.07 percent, at 14,752.25

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

By Fergal Smith

TORONTO, Oct 18 (Reuters) - Canada's main stock index rose to a more than 2-week high on Tuesday as rising oil and gold prices supported resource stocks, while shares of financial companies also climbed in a broad-based rally.

The materials group, which includes precious and base metals miners and fertilizer companies, added 3.3 percent, while the energy group was up 0.9 percent.

"It's largely been driven by oil and gold, but that's sort of the way its been over the last couple of months," said John Stephenson, president & CEO at Stephenson & Company Capital Management.

Spot gold XAU= rose 0.5 percent, while U.S. crude oil futures settled 35 cents higher at $50.29 a barrel as expectations of OPEC output curbs lifted prices. O/R

Teck Resources TCKb.TO jumped 6 percent to C$27.10, touching its highest since February 2014, after several banks upped their price targets and outlooks for the stock on Monday.

The most influential gainers on the index also included Barrick Gold Corp ABX.TO , up 2.9 percent to C$21.47, and pipeline company TransCanada Corp TRP.TO , which advanced 1.5 percent to C$62.08.

Gains on Wall Street added to the positive backdrop for Canada's market as a host of solid U.S. earnings reports put corporate profits on track to snap a four-quarter streak of declines. think people are quite nervous about the earnings season in general, but so far so good," Stephenson said.

The heavyweight financials group gained 0.9 percent and industrials rose 0.8 percent.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 155.73 points, or 1.07 percent, at 14,752.25.

Nine of the index's 10 main groups were in positive territory, with only consumer discretionary stocks lagging.

Stocks can continue to gain ground, but reduced global growth amid more trade protectionism, aging demographics and lower Chinese growth will restrain gains, said Stephenson.

Amaya Inc AYA.TO fell more than 8 percent to C$18.65 after the online gambling company said it had abandoned merger talks with Britain's William Hill. manufacturing sales in August jumped much more than expected on widespread strength, reinforcing expectations that broad economic growth rebounded in the third quarter. Corp's Toronto-listed stock OGC.TO advanced 6.1 percent to C$4.01 after the Australian miner provided an update on its Philippines operations.

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.