TSX extends gains as banks, industrials climb

Mon May 6, 2013 5:07pm EDT
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By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed for a third straight session on Monday as financial and industrial shares gained, and energy companies' stocks rallied after oil prices rose on Middle East tensions.

A jump in Penn West Petroleum Ltd (PWT.TO: Quote) also supported the market after the oil and gas producer named two industry veterans to its board.

But the market's gains were capped by weakness in the consumer staples sector.

"You're seeing some appetite for risky assets," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

"You're seeing some money gravitate from the typically defensive sectors like the staples to slightly more cyclical names," he added. "Certainly the banks would be on the top of that list for anyone who is thinking of making that move."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE gained 15.89 points, or 0.13 percent, to 12,453.92.

Still, the benchmark index is barely up for the year, badly underperforming its record-breaking U.S. peers since the start of 2013.

"Things will get better in Canadian equity markets" as the year progresses, said Arthur Salzer, executive director and chief executive at Northland Wealth Management.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007.REUTERS/Mark Blinch