TSX moves higher on resource stock gains

Tue Jun 2, 2015 5:07pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Tuesday as higher commodity prices helped many energy producers and mining companies, and financial issues gained.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE gained 30.61 points, or 0.20 percent, to 15,104.74. It ended with 155 issues advancing compared with 89 decliners.

A fall in the U.S. dollar pushed up a range of commodities priced in the currency, but lingering worries about demand in China and stretched valuations limited optimism.

"The valuations don't make any sense on the current oil price. But everyone expects oil prices to come back to a better level," said Barry Schwartz, portfolio manager at Baskin Financial Services.

A slump in oil has stung Canada's large energy industry, although some of the most popular stocks have not fallen as far as commodities in recent months. That has left investors flatfooted as prices rebound off recent lows.

U.S. crude prices CLc1 settled up 1.8 percent to $61.26, while Brent crude LCOc1 added 1 percent to $65.49. [O/R]

The energy group gained 1 percent, while the materials group that includes miners moved 0.9 percent higher.

"We're preaching caution right now," said Philip Petursson, from the portfolio advisory group at Manulife Asset Management. "The data does not justify taking an aggressive stance."   Continued...

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