TSX extends rally, up nearly 3 percent on soaring oil

Thu Aug 27, 2015 5:17pm EDT
 
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By Solarina Ho

TORONTO (Reuters) - Canada's main stock index jumped nearly 3 percent on Thursday, recouping this week's hefty losses, as a 10 percent surge in crude oil prices fueled a rally in energy shares and helped lead an across-the-board bounce.

U.S. crude CLc1 prices vaulted 10.26 percent to settle at $42.56 a barrel on a global rally in equity markets and an unexpected fall in U.S. crude inventories. [O/R]

"That's really given the energy stocks a breather. All of them are having a really good day," said John Kinsey, portfolio manager at Caldwell Securities. "We've had two really good days here now, and I think that means maybe the panic has subsided, at least for now."

All 10 of the index's main groups were on higher ground, with the three most influential sectors, energy, materials and financials climbing 6.6, 4.5 and 2.2 percent respectively. Those groups make up roughly two-thirds of the index's weight.

Suncor Energy Inc (SU.TO: Quote) was the most influential gainer on the index, jumping 5.5 percent to C$36.43. Canadian Natural Resources Ltd (CNQ.TO: Quote) soared 8.6 percent to C$28.23.

Canada's biggest bank, Royal Bank of Canada (RY.TO: Quote), jumped 2.6 percent to C$73.99.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 385.08 points higher, or 2.88 percent, at 13,766.67.

Advancing issues outnumbered declining ones on the TSX by 229 to 18, for a 12.72-to-1 ratio on the upside.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch