TSX gains as higher oil, steady gold boost resource stocks

Fri Dec 16, 2016 4:49pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Friday as higher oil prices boosted heavyweight energy stocks and gold miners recovered as the price of bullion steadied.

The most influential gainers included major energy producer Canadian Natural Resources Ltd, which rose 1.2 percent to C$44.70, and pipeline operator Enbridge Inc, which gained 2.5 percent to C$57.35.

Oil rose, edging closer to new 17-month highs after Goldman Sachs boosted its price forecast for 2017 and producers showed signs of adhering to a global deal to reduce output. [O/R]

"Oil's been like a yo-yo and I think that's what's been driving the TSX back and forth," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services.

"The Canadian market seems to be driven completely by commodities and a little bit of the interest rate inflation play with the financials participating," he said.

The Toronto Stock Exchange's S&P/TSX composite index ended the day up 33.89 points, or 0.22 percent, at 15,252.20. The index fell 0.4 percent on the week after notching a 1.7 percent in the prior week.

Bombardier Inc jumped 5.1 percent to C$2.05. The plane and train maker said it is still seeking funds from the Canadian government despite improved liquidity, as the company assured investors it is prepared to deal with the cost of value guarantees for older jets.

The energy group climbed 0.5 percent, while the financials group, which accounts for more than a third of the index's weight, fell 0.2 percent.   Continued...

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