(Reuters) - Canada's main stock index rose on Monday, as energy stocks jumped 3% tracking oil prices, after U.S. drugmaker Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.
Moderna Inc (O:MRNA) became the second U.S. company in a week to report positive results from its COVID-19 vaccine trial, which raised hopes of a quicker economic recovery from a pandemic-led recession.
Adding to the upbeat mood, Canada's factory sales increased by 1.5% in September from August on higher sales in the wood industry, as well as the chemical industry, Statistics Canada said.
Crude prices rose about 4% and boosted energy stocks (SPTTEN), with oil producer Parex Resources Inc (TO:PXT), up 6.1%, leading gains.
At 9:41 a.m. ET (1441 GMT), the Toronto Stock Exchange's S&P/TSX composite index (GSPTSE) was up 60.24 points, or 0.36%, at 16,735.88.
The materials sector (GSPTTMT), which includes precious and base metals miners, lost 0.5% as gold prices fell.
Fortuna Silver Mines Inc (TO:FVI) fell 4.9%, the most on the TSX, after Canaccord Genuity downgraded the stock
The second biggest decliner was Endeavour Mining Corp (TO:EDV), down 3.7%, after the miner agreed to buy Teranga Gold (TO:TGZ) in deal worth $2.4 billion.
On the TSX, 137 issues were higher, while 84 issues declined for a 1.63-to-1 ratio favouring gainers, with 29.95 million shares traded.
H&R Real Estate Investment Trust (TO:HR_u) rose 5.7% after TD Securities raised its price target on the real estate investment trust's stock.
The most heavily traded shares by volume were Manulife Financial Corp (TO:MFC), Air Canada (TO:AC) and Suncor Energy Inc (TO:SU).
The TSX posted four new 52-week highs and no new low.
Across all Canadian issues there were 52 new 52-week highs and three new lows, with total volume of 53.36 million shares.