Oil prices push TSX higher as rising yields aid financials
TORONTO (Reuters) - Canada's main stock index finished higher on Wednesday as oil and gas shares rallied on stronger crude prices, while financial stocks gained on higher bond yields.
Nine of the top 10 most influential movers on the index were oil and gas or financial companies.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 71.33 points, or 0.48 percent, at 14,889.04. Eight of the index's 10 main sectors rose, with advancers outnumbering decliners by about 3.4-to-1.
"Energy is really doing the bulk of the lifting in today's market," said Allan Small, a senior investment adviser at Holliswealth.
Among the most heavily weighted movers were pipeline company TransCanada Corp TRP.TO, which rose 2.6 percent to C$52.05, and Suncor Energy Inc (SU.TO: Quote), which advanced 1 percent to C$36.23.
The index's energy group climbed 1.3 percent as oil prices jumped on a drawdown in U.S. inventories that boosted the outlook for summer fuel demand. U.S. crude CLc1 prices settled up $1.29, or 2.1 percent, at $61.43 a barrel, while Brent crude LCOc1 settled up 82 cents, or 1.3 percent at $65.70.[O/R]
Among rising financials, Manulife Financial (MFC.TO: Quote) climbed 1.4 percent to C$23.97, and Sun Life Financial Inc SLF.TO advanced 2.6 percent to C$42.70. The overall group rose 0.6 percent, helped by rising bond yields.
"Rates have really ticked up in the last week and a half or so in both Canada and in the U.S., which is really good for banks, a steeping yield curve is good for banks on their net interest margins," said Bryden Teich, associate portfolio manager at Avenue Investment Management.
The index's materials group, which includes miners, climbed 0.5 percent, while consumer staples were up 1 percent. Health care and telecoms were the lone decliners, falling nearly 0.7 percent and 0.2 percent, respectively.
(Reporting by Solarina Ho and Alastair Sharp; Editing by Peter Galloway)
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