(Reuters) - Canada's main stock index rose on Friday, led by energy stocks as oil prices gained after OPEC producers and allies promised to meet supply cut commitments, while signs of improving fuel demand further bolstered sentiment.
At 9:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 124.15 points, or 0.8%, at 15,603.98.
Iraq and Kazakhstan pledged to comply better with oil cuts during a meeting of an OPEC+ panel on Thursday, sources told Reuters, while fuel demand across Europe showed signs of a gradual recovery after hitting record lows in April.
The energy sector climbed 2.2% as U.S. crude prices rose 3.5% a barrel, while Brent crude added 2.6%. [O/R]
Investors also seemed to shrug off data that showed the nation's retail sales plummeted 26.4% in April, posting a record decline for a second consecutive month due to the coronavirus outbreak.
The financials sector gained 0.6%. The industrials sector rose 0.3%.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.3% as gold futures rose 0.7% to $1,736.2 an ounce. [GOL/]
On the TSX, 195 issues were higher, while 29 issues declined for a 6.72-to-1 ratio favouring gainers, with 130.84 million shares traded.
The largest percentage gainer on the TSX was First Quantum Minerals Ltd (TO:FM), which jumped 7% after Jefferies hiked its target price for the stock, followed by Baytex Energy Corp (TO:BTE), which rose 5.4%.
Pot producer Hexo Corp (TO:HEXO) fell 3.8%, the most on the TSX, followed by Bombardier Inc (TO:BBDb), down 3.6%.
The most heavily traded shares by volume were Zenabis Global Inc (TO:ZENA), down 37.9%, Bombardier Inc (TO:BBDb), down 3.6% and Enbridge Inc (TO:ENB), up 0.4%.
The TSX posted 2 new 52-week highs and no new lows.
Across all Canadian issues there were 13 new 52-week highs and two new lows, with total volume of 159.84 million shares.