TSX rises as oil shares gain after Iran deal

Tue Jul 14, 2015 5:14pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Tuesday as oil and gas stocks gained after a landmark nuclear deal between Iran and six global powers left sanctions on the country's crude exports in place for now, boosting energy prices.

The deal added to cautious optimism in recent sessions about an agreement to avert Greece's exit from the euro currency bloc and a rebound in China equities after a rout.

"There's a little bit more of a calm into the marketplace that's come over the past couple of days," said Philip Petursson from the portfolio advisory group at Manulife Asset Management.

The energy group, one of the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE most influential groups, jumped 1.9 percent. Suncor Energy Inc (SU.TO: Quote) rose 2 percent to C$35.05 and Encana Corp (ECA.TO: Quote) jumped 4.3 percent to C$12.74.

U.S. crude CLc1 prices gained 1.9 percent to $53.21 a barrel, while Brent crude LCOc1 added 1.4 percent to $58.63. [O/R]

The index rose 66.18 points, or 0.46 percent, to 14,599.40, with nine of the ten main industry groups ending higher and financials barely lower.

But investors remained cautious on Canadian equities given expectations for lackluster earnings reports in the coming weeks.

"There's still a good deal of uncertainty out there," Petursson said. "There's still some risk to be had in terms of economic growth."   Continued...

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