TSX gains amid U.S. optimism, led by resource shares

Mon Dec 5, 2016 5:12pm EST
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By Fergal Smith

TORONTO (Reuters) - Canada's benchmark stock index rose on Monday as recent strength in commodity prices supported the energy and materials groups, while a fresh record high for the Dow Jones industrials boosted investor confidence.

Wall Street has rallied since the U.S. election as investors bet that President-elect Donald Trump will deliver significant economic stimulus and cuts in corporate taxes and regulations.

U.S. optimism "is carrying over into our market," said Brian Pow, vice president, research at Acumen Capital Partners.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 42.65 points, or 0.28 percent, at 15,095.17. Seven of the index's 10 main groups ended higher.

The broad rally is "indicative of a little bit more confidence in what's going on," Pow said.

The index has rallied 16 percent this year. On Thursday, it touched a near 18-month high intraday at 15,149.54.

The materials group, which includes precious and base metals miners and fertilizer companies, gained 1 percent despite a drop in gold mining stocks.

Potash Corp (POT.TO: Quote) gained 2.4 percent to C$24.58, while copper producer First Quantum Minerals Ltd (FM.TO: Quote) jumped 5.8 percent to C$15.61.   Continued...

A TMX Group sign, the company that runs the Toronto Stock Exchange (TSX), is seen in Toronto, June 23, 2014. REUTERS/Mark Blinch