TSX gains on crude bounce, energy sector jumps 5 percent
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index surged on Wednesday as a jump in oil prices boosted energy stocks and investors braced ahead of Thursday's pivotal U.S. Federal Reserve rate decision.
The overall group of oil and gas stocks jumped more than 5 percent after a sharp drawdown in U.S. stockpiles. [O/R]
The broader Canadian market followed suit, with just 17 out of almost 250 stocks ending in the red and most of the 10 main groups adding more than 1 percent.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE rose 301.07 points, or 2.24 percent, to 13,763.78.
"The direction is correct, the magnitude has several reasons," said Diana Avigdor, head of trading at Barometer Capital Management. She said the move higher was likely exaggerated by lack of liquidity, option expiries, overnight headlines out of Asia and the U.S. crude stockpile data.
The most influential positive movers on the index were Suncor Energy Inc (SU.TO: Quote), which bounced 4.2 percent to C$34.81, and Canadian Natural Resources (CNQ.TO: Quote), which jumped 6.3 percent to C$27.98.
The financials group, including Canada's largest banks and their exposure to the energy sector, climbed 2 percent.