TSX ends volatile January on positive note

Fri Jan 29, 2016 5:19pm EST
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By Alastair Sharp and Fergal Smith

TORONTO (Reuters) - Canada's main stock index jumped on Friday as investors cheered the Bank of Japan's bold move to stimulate growth, while rising oil prices and an accommodative royalty update in Alberta boosted energy stocks.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 230.20 points, or 1.83 percent, at 12,822.13.

It gained 3.4 percent on the week, a second strong weekly performance after touching its lowest since August 2012 earlier in the month. It lost 1.4 percent in January.

All 10 main groups rose at least 1.2 percent, with sentiment helped by the Bank of Japan unexpectedly cutting a benchmark interest rate below zero in a bid to overcome deflation, using an aggressive policy pioneered by the European Central Bank.

The energy sector gained 1.3 percent as the oil and gas industry in Canada, home to the world's third-largest crude reserves, cheered a review of royalties in Alberta that kept rates unchanged on existing oil wells and oil sands projects.

"We are getting a little bit more clarity as to how those royalty streams are going to be taxed and paid," said Kevin Headland, a director in the portfolio advisory group at Manulife Asset Management.

"Clarity is always good for the equity markets, especially when the clarity is on a good news front for the energy patch."

Canadian Natural Resources (CNQ.TO: Quote) ended up 2.8 percent at C$29.99 and Suncor Energy Inc (SU.TO: Quote) rose 1.1 percent to C$33.18.   Continued...

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