TSX gains on heavyweight resource stocks as oil jumps

Tue Oct 6, 2015 6:27pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained for a third straight session on Tuesday, with heavily weighted resource stocks and banks carrying most of the gains on the back of higher commodity prices.

Seven of the Toronto Stock Exchange's S&P/TSX composite index's .GSPTSE 10 main sectors slipped, but the index ended up 95.06 points, or 0.70 percent, at 13,647.26.

The rising financials, energy and materials sectors account for almost two-thirds of the index's weight.

The energy group gained 3.8 percent as crude oil prices broke through the top of a month-long range. Materials, which includes miners, rose 3.3 percent.

"Oil is heading higher, the real question is when. And some guys are trying to say maybe it's a bit sooner than later," said Manash Goswami, a portfolio manager at First Asset Investment Management.

Bombardier Inc BBDb.TO stock surged 15 percent in the last half-hour of trading to close at C$1.77 after Reuters reported the planemaker has approached Airbus about selling a majority stake in its CSeries jet in order to shore up its depleted balance sheet.

The most influential mover on the index was Canadian Natural Resources (CNQ.TO: Quote), which rose 4.8 percent to C$29.55. Crescent Point Energy (CPG.TO: Quote) surged 7.4 percent to C$18.91 and Encana Corp (ECA.TO: Quote) jumped 7 percent to C$10.60.

U.S. crude CLc1 prices jumped 5.6 percent to $48.86 a barrel, while Brent LCOc1 added 5.8 percent to $52.08.[O/R]   Continued...

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