TSX rises, led by banking, energy stocks as oil rallies
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rallied on Wednesday as strength in crude oil prices supported energy and banking stocks, although paring gains after the U.S. Federal Reserve interest rate decision.
The index extended its recovery from a recent three-year low, touching its highest level since Jan. 8 at 12,524.13.
It is still reflecting "the positive price action out of the oil commodity," said Sid Mokhtari, market technician and director, institutional equity research at CIBC World Markets.
U.S. crude prices settled at $32.30 a barrel, up 2.7 percent after Russia said it was discussing the possibility of co-operation with the Organization of the Petroleum Exporting Countries. [O/R]
But the U.S. Federal Reserve frustrated investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.
The financial services index rose 1.3 percent. It included a 1.7 percent advance for Toronto-Dominion Bank to C$51.72, while Royal Bank of Canada was up 1.5 percent at C$68.63.
Canadian Natural Resources Ltd rose 4.8 percent to C$27.68. The overall energy group was up 1.5 percent.
The Toronto Stock Exchange's S&P/TSX composite index closed up 46.45 points, or 0.38 percent, at 12,377.77. Five of the index's 10 main groups were in positive territory. Continued...