TSX rallies as energy, banking stocks rebound

Mon Nov 16, 2015 5:09pm EST
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rallied on Monday, led by gains in heavyweight energy and banking stocks, helped by a rebound in crude oil after the Paris attacks raised geopolitical tensions.

The sharp gain followed a 3.5 percent drop for the index last week.

"It is a little bit of a technical bounce, it got oversold," said Paul Hand, managing director at RBC Capital Markets.

The overall energy group soared 4.3 percent, helped by a sharp rally in crude oil after finding support ahead of $40 a barrel. [O/R]

The most influential energy stocks were Suncor Energy Inc (SU.TO: Quote), which rose 3.8 percent to C$38.32, and Canadian Natural Resources Ltd (CNQ.TO: Quote), which rose 5.2 percent to C$33.18.

"(It) seems like some pretty good demand for commodities today which is helping the TSX," said Youssef Zohny, portfolio manager at StennerZohny Investment Partners of Richardson GMP Ltd.

Financials advanced 1.6 percent, including a 1.5 percent gain for Royal Bank of Canada (RY.TO: Quote) and a 1.7 percent gain for Bank of Nova Scotia (BNS.TO: Quote).

"There's some anticipation of interest rate increases and some investors are taking that as potentially good for some bank profit margins," said Zohny.   Continued...

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