TSX nears five-month high on energy gains; TransCanada slips
By John Tilak
TORONTO (Reuters) - Canada's main stock index rose to its highest level in almost five months on Friday as robust oil prices helped boost the energy sector, offsetting a decline in TransCanada Corp (TRP.TO: Quote) after the pipeline company reported quarterly results.
Positive signals from Germany, where economic growth was much stronger than expected in the fourth quarter, also supported the market.
TransCanada reported a higher-than-expected quarterly profit, driven mainly by increased earnings from its Canadian operations. But the stock shed 2.2 percent.
Both U.S. CLc1 and Brent LCOc1 crude oil prices were up around 3 percent, helping the energy sector rebound from recent lows.
The benchmark TSX rose for a fifth straight session and was on track to record a weekly gain.
“It’s quite the recovery, considering what we’ve gone through,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.
“But it’s going to be choppy. We’re getting to a point where investors are getting too complacent,” he added. “There’s a degree of downside risk that’s being overlooked now.”
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 36.29 points, or 0.24 percent, at 15,264.81. Six of the 10 main sectors on the index were higher. Continued...