TSX rises as resource stocks rally, Rona nearly doubles
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rose on Wednesday as strength in commodity prices supported energy and mining stocks, while shares in home retailer Rona Inc RON.TO almost doubled after a generous takeover deal.
The index snapped a two-day losing streak, rebounding from a one-week low earlier in the session as a weaker U.S. dollar helped drive commodity markets higher.
"This is all U.S. dollar related," said Norman Levine, managing director, Portfolio Management Corp.
Since resource markets are priced in U.S. dollars, a lower U.S. dollar has a very positive effect on resource prices, he added.
The dollar hit its lowest level against the euro since last October on growing expectations for a slower pace of Federal Reserve rate hikes this year.
Oil prices jumped 8 percent [O/R], while gold rose to three-month highs.
The energy group rallied 4.5 percent. It included a 3.8 percent gain for pipeline company Enbridge Inc (ENB.TO: Quote) to C$47.87, while Canadian Natural Resources Ltd (CNQ.TO: Quote) was up 7.9 percent at C$29.94.