TSX adds 1 percent as crude rise helps energy stocks

Mon Sep 21, 2015 4:37pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index added almost 1 percent on Monday, bolstered by robust gains across most of the index's key sectors, including financial and energy stocks, which were helped by higher crude oil prices.

Eight of the index's 10 main groups gained, with seven of them up at least 1 percent. Financial stocks, which make up more than a third of the TSX's weight, rose 1.7 percent.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 132.54 points, or 0.97 percent, at 13,779.44.

The rebound follows Friday's 1 percent loss following the U.S. Federal Reserve's decision to stand pat on raising U.S. interest rates amid concerns about global economic growth.

Manash Goswami, a portfolio manager at First Asset Investment Management Inc, said the Fed's dovish tone may have encouraged investors to buy into higher-yielding stocks such as Manulife Financial Corp (MFC.TO: Quote) and Enbridge Inc (ENB.TO: Quote).

Enbridge was the index's most influential gainer, up 3.5 percent at C$52.89, while Manulife added 3.2 percent to C$21.08.

Energy stocks gained 1.7 percent as crude CLc1 LCOc1 rose following U.S. drilling data showing slower activity. [O/R]

"A lot of what's going to happen in Canada is going to be driven by commodities, sentiment and reality," Goswami said.   Continued...

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