TSX gains as banks, resource stocks, railways rise

Thu Feb 4, 2016 4:54pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index jumped on Thursday as higher commodity prices helped lift mining stocks, while banks and railways also saw strong gains and the energy sector rose despite a slip in oil prices.

A weaker U.S. dollar .DXY helped drive gold and other metals higher, as expectations eased of a further rise in U.S. interest rates this year and investors scrambled to close out bearish positions before the Lunar New Year holiday in China.

The materials sector of the Toronto index, which includes precious and base metals miners and fertilizer companies, added 4.6 percent, with Barrick Gold Corp (ABX.TO: Quote) up 4.3 percent to C$15.41 and Goldcorp Inc (G.TO: Quote) adding 5.1 percent to C$18.18.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended the session up 181.48 points, or 1.44 percent, at 12,774.50. Eight of its 10 main groups gained.

Global equity and other markets have swung wildly in the first weeks of 2016, and Canada's index has followed along, hitting its lowest since August 2012 in mid-January before rebounding some 10 percent.

"The biggest challenge is this high correlation - you're either really right or really wrong if you're making big calls," said Christine Tan, chief investment officer at Excel Funds, which manages emerging market exposure for Canadian investors.

The most influential movers on the index included Canadian Pacific Railway Ltd (CP.TO: Quote), which rose 6.8 percent to C$169.80, and its rival Canadian National Railway (CNR.TO: Quote), which added 3.1 percent to C$75.72.

Canada's largest oil and gas company, Suncor Energy Inc (SU.TO: Quote), ended up 0.9 percent at C$31.82 after reporting a fourth-quarter operating loss and cut to 2016 capital spending plans due to the collapse in global crude prices.   Continued...

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