TSX gains as energy shares bounce; Open Text surges
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index rose on Thursday, helped by a second day of gains for energy shares after plumbing new depths earlier in the week, and with shares in Open Text Corp OTC.TO surging after the software company's outlook impressed investors.
The energy sector jumped 2.9 percent, after gaining a similar amount on Wednesday, after separate data showed a much steeper than expected drawdown in U.S. stockpiles and a slip in U.S. production. [O/R]
"It's bargain hunting in search of a bottom. Oil and gas is better on slightly better numbers, so that's given them a whiff of hope," said John Ing, president of Maison Placements Canada.
Open Text was the second-biggest driver for the TSX bounce, surging 22.3 percent to C$58.08 after reporting revenue that beat estimates for the first time in four quarters and raising its fiscal 2016 operating margin forecast.
Some energy names, such as Suncor and independent oil producer Cenovus Energy Inc (CVE.TO: Quote), did not react as expected following their earnings reports, said Colin Cieszynski, senior market analyst at CMC Markets Canada.
Cenovus shares climbed 2.1 percent to C$19 despite the company slashing its quarterly dividend by 40 percent and announcing another round of job cuts.
"I think what we're seeing here is probably a bit of short-covering and bargain-hunting, just trading against the news," said Cieszynski. Continued...