TSX rises on energy gains, RBC outshines peers
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index rose on Tuesday with lift from a move higher in Royal Bank of Canada (RY.TO: Quote) after it avoided the need to set aside additional capital, and by solid gains in energy sector shares as oil prices jumped on supply disruptions.
The heavyweight energy group climbed 3.4 percent, with Cenovus Energy Inc CVE.TO leaping 5.6 percent to C$21.61 and Crescent Point Energy Co CPG.TO surging 6.8 percent to C$19.55.
"I believe you're seeing some portfolio managers tip-toe back into some of the beaten-up stocks in this sector that represent good, solid, long-term value," said Rick Hutcheon, president and chief operating officer at RKH Investments.
Pipeline operator TransCanada Corp TRP.TO added 0.5 percent to C$44.44 after asking the U.S. government to suspend a review of its controversial Keystone XL project.
The most influential gainer was Royal Bank of Canada (RY.TO: Quote), which gained 1.5 percent to C$75.75, compared to a 0.3 percent gain for the overall financials group.
The country's largest bank avoided a widely expected designation from the Financial Stability Board as a global, systemically important bank, which would have forced it to have a higher capital position.
"The cheer was heard all the way from Bay Street to St. Clair where I am," said Barry Schwartz, portfolio manager at Baskin Financial Services.
"It's the regulators saying you're OK, you're not going to be covered under these new regulations that will force you to have more capital that will constrain your ability to grow." Continued...