TSX extends rally as energy gains despite oil price slip

Wed Oct 7, 2015 4:57pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Alastair Sharp

TORONTO (Reuters) - Resource stocks helped extend a rally in Canada's main stock index on Wednesday despite a drop in crude oil prices, while Bombardier Inc (BBDb.TO: Quote) tumbled after the planemaker said CSeries talks with Airbus had ended.

The energy sector rose 3 percent and materials climbed 2.5 percent as investors bid up the beaten-down groups.

"To an important degree it reflects the fact that everybody got so negative," said John Johnston, chief strategy officer at Davis-Rea. "When things are that negative you don't need good news to go up, you just need less bad news."

Cash-strapped Bombardier was the single biggest loser, plunging 13 percent to C$1.54 a day after Reuters reported talks between Montreal-based planemaker and Airbus, which both companies later said had failed.

Energy and materials stocks are down around 17-18 percent so far this year, hurt by a slowdown in global growth that has hit demand for the commodities they produce.

Canadian Natural Resources (CNQ.TO: Quote) was among the top gainers on the day, surging 5.7 percent to C$31.23, while pipeline company Enbridge Inc (ENB.TO: Quote) rallied 3.1 percent to C$55.89.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 221.09 points, or 1.62 percent, at 13,868.35, for its fourth straight gain and highest close since mid-August.

Consumer staples was the only sector that failed to rise. There were 11 gainers for every three decliners.   Continued...

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