TSX pushed higher by resource stocks as oil, gold gain

Mon Apr 6, 2015 4:53pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained half a percent on Monday as a jump in the prices of crude oil and gold helped oil and gas stocks and mining issues finish higher.

Energy stocks gained almost 2 percent, rising in tandem with a surge in crude prices, which rose after Saudi Arabia hiked its oil prices for Asia for a second month in a row and as U.S inventories data showed barely a rise last week. [O/R]

Canadian Natural Resources added 2.4 percent to C$40.25 and Enbridge Inc rose 1.2 percent to C$61.39. Crescent Point Energy Co climbed 3.2 percent to C$30.80.

But one fund manager said that while some energy names, such as Crescent Point, Suncor Energy Inc and Teck Resources Ltd, should be attractive for patient investors, choppy trading will likely continue.

"It's a little unwise to chase some of the stocks in those sectors because they will continue to be volatile going forward," said Elvis Picardo, strategist at Global Securities in Vancouver.

"For someone with a longer-term view these are really great levels to be adding to positions or even setting up new positions," he said.

The Toronto Stock Exchange's S&P/TSX composite index closed up 74.03 points, or 0.49 percent, at 15,100.65. Six of the ten main sectors gained.

Turquoise Hill Resources Ltd jumped 9.8 percent to C$4.47 after Mongolia's prime minister said the country will move ahead will development of a copper mine in which the Rio Tinto-controlled company owns a majority stake.   Continued...

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