TSX climbs as resource prices rise

Tue Oct 28, 2014 5:00pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose more than 1 percent on Tuesday, with higher crude and other commodity prices helping boost energy and mining companies as investors returned to buying after a sharp sell-off in recent weeks.

All 10 major sectors of the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE notched gains, with heft provided by heavyweight resource and financial sectors.

"This is just investors coming back, refocusing on the fundamentals and seeing that things aren't so bad," said Craig Fehr, Canadian market strategist at Edward Jones in St. Louis, Missouri.

Oil, gold and copper prices rose on the day, helping Canada's preponderance of resource-focused companies gain. [O/R] [GOL/] [MET/L]

Suncor Energy Inc (SU.TO: Quote) was the biggest positive driver, adding 2.2 percent to C$39, while Canadian Natural Resources Ltd (CNQ.TO: Quote) gained 2.1 percent to C$38.74 and Enbridge Inc (ENB.TO: Quote) added 1.9 percent to C$53.26.

Shares of Canadian uranium miner Cameco Corp (CCO.TO: Quote) jumped 3.8 percent to C$19.57, following news that a town in southwest Japan became the first to approve the restart of a nuclear power station.

All 48 of the country's nuclear reactors were gradually taken offline following the Fukushima catastrophe in 2011, the world's worst nuclear disaster since Chernobyl in 1986.

"Hopefully this is the catalyst we all have been waiting for," said David Talbot, analyst at Dundee Capital Markets. "But two restarts from 48 reactors isn’t going to move the needle much."   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch