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CANADA STOCKS-TSX rises to a 4-month high as oil rally boosts energy, financials

Published 2016-03-17, 05:19 p/m
© Reuters.  CANADA STOCKS-TSX rises to a 4-month high as oil rally boosts energy, financials
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(Adds portfolio manager quotes, details on the index's
performance, industrials, Barrick Gold, updates prices)
* TSX up 143.17 points, or 1.06 percent, at 13,621.3
* The index touched its highest since Nov. 4 at 13,685.45
* Eight of the TSX's 10 main groups rise

By Fergal Smith
TORONTO, March 17 (Reuters) - Canada's main stock index rose
to a four-month high on Thursday as higher oil prices supported
energy stocks, while the financial and industrial sectors also
gained.
The move followed the U.S. Federal Reserve's scaling back of
its expectation of how many rate hikes it could implement this
year, which weighed on the U.S. currency and boosted risk
appetite.
The index closed above its 200-day moving average and has
rebounded 18 percent since hitting an almost 3-1/2-year low in
January, supported by a recovery in crude oil prices and
stabilization in global financial markets.
"It's quite significant from a technical point of view,"
said Elvis Picardo, strategist at Global Securities in
Vancouver.
"Given the strength of the global economy there is going to
be doubts about the sustainability, but I got to say on current
form it looks quite good," he added.
The most influential gainers on the index included Royal
Bank of Canada RY.TO , which rose 1.7 percent to C$75.86, and
TransCanada Corp TRP.TO , which advanced 2.6 percent to
C$49.42.
The energy group climbed 1.8 percent, while financials
gained 1.6 percent.
U.S. crude CLc1 prices settled at $40.20 a barrel, up 4.52
percent. O/R
Industrials also contributed to the rally, including a 2.4
percent advance in the shares of Canadian National Railway Co
CNR.TO to C$81.83.
"As the index has moved higher we have seen the strength
percolate to other (non-resource) sectors as well," said
Picardo.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 143.17 points, or 1.06 percent, at 13,621.3.
It touched its highest since Nov. 4 at 13,685.45.
Eight of the index's 10 main groups ended higher.
The two exceptions were the materials group, which includes
precious and base metals miners and fertilizer companies, and
healthcare.
The materials group fell 0.5 percent, including a 3.6
percent drop in Barrick Gold Corp ABX.TO to C$19.21.
Spot gold XAU= dipped 0.4 percent after surging in the
previous session.
Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO was down
11.8 percent at C$38.66 after sources told Reuters that the
company's creditors are preparing tough demands for default
negotiations.
The overall healthcare sector fell 2.7 percent.
The fallout for Valeant has affected some of the other big
names in the sector, said Picardo.

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