TSX bucks downtrend, rises as energy stocks bounce

Thu Jan 21, 2016 4:44pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained on Thursday, interrupting a sustained down trend, as energy stocks surged and oil prices rebounded from near 12-year lows.

Canadian Natural Resources (CNQ.TO: Quote), one of the country's biggest oil and gas producers, jumped 8.4 percent to C$24.82, while pipeline company Enbridge Inc (ENB.TO: Quote) gained 8.3 percent to C$44.66. The overall group rose 5.2 percent.

"The big story is a pop back in energy," said John Stephenson, president at Stephenson & Company Capital Management. "Then (European Central Bank Governor) Mario Draghi was very positive on the likely actions of the ECB, so that was a big plus for markets, so as a result we have got a bit of relief in our otherwise downward trend."

The ECB's Draghi hinted of additional stimulus measures as early as March, citing concerns over China and emerging markets, volatility in financial and commodity markets and geopolitical risks.

Canadian banks and consumer stocks also rose, while miners and railways weighed.

Potash Corp (POT.TO: Quote) fell 3.3 percent to C$22.80, after the fertilizer producer said it may defer plans to build a new West Coast shipping terminal with partners Mosaic Co (MOS.N: Quote) and Agrium Inc (AGU.TO: Quote). Agrium shares lost 1.5 percent to C$123.52.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 192.75 points, or 1.63 percent, at 12,035.86.

Half of its 10 main groups were higher, with advancers outnumbering decliners by less than 3 to 1.   Continued...

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