January 16, 2015 / 12:42 PM / 3 years ago

TSX jumps nearly 2 percent as oil, metals strengthen

TORONTO (Reuters) - Canada’s main stock index rose nearly 2 percent on Friday as shares of oil and mining companies soared on the back of rebounding commodity prices.

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

Oil prices, under pressure since June due to concerns about oversupply, strengthened after the International Energy Agency said that it expects “the tide will turn”.

A survey showing that U.S. consumer sentiment rose in January to its highest in more than a decade provided further support for oil.

The gain on the Toronto stock market’s benchmark TSX index came after declines in each of the previous five sessions. It still recorded a drop on the week, a period in which market volatility surged due to choppy oil prices and Switzerland’s move to abandon its more than three-year-old ceiling on the franc’s value against the euro.

“We’ve seen a lot of pain,” said Bob Gorman, chief portfolio strategist at TD Wealth. “It will be more muted progress this year.”

Gorman said it expects mid- to high single-digit growth for the TSX in 2015.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 267.59 points, or 1.91 percent, at 14,309.41. Nine of the 10 main sectors on the index were higher.

Shares of oil producers jumped 6.1 percent. Canadian Natural Resources Ltd (CNQ.TO) added 8.8 percent to C$35.51, and Suncor Energy Inc (SU.TO) rose 5.2 percent to C$36.

The gold-mining sector gained 3.3 percent, helped by a higher bullion price. Barrick Gold Corp (ABX.TO) rose 3.5 percent to C$14.09, and Goldcorp Inc (G.TO) was up 4.8 percent at C$28.49.

Copper prices also rose, gaining 1.5 percent, helping support a 4.7 percent jump in shares of Teck Resources Ltd TCKb.TO.

Editing by Peter Galloway

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