TSX rises to a three-month high, led by energy and mining stocks

Mon Mar 7, 2016 4:48pm EST
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Monday to a three-month high as mining and energy stocks gained on the back of higher oil and gold prices, while industrial and financial sector stocks also rallied.

The index has rebounded 16 percent since hitting an almost 3-1/2 year low in January, helped by a recovery in commodity prices and stabilization in financial markets.

"There's a certain amount of short-covering that's going on that's helping to drive the market," said Michael Sprung, president at Sprung & Co. Investment Counsel.

The energy group climbed 2.3 percent, while the materials sector, which includes precious and base metals miners and fertilizer companies, added 2.2 percent.

Global oil markets jumped more than 5 percent after Ecuador said it was holding a meeting of Latin American crude producers as OPEC sought a higher anchor price for oil. [O/R]

Suncor Energy Inc (SU.TO: Quote) rose 2.5 percent to C$34.58, while Enbridge (ENB.TO: Quote) was up 2.2 percent at C$50.00.

Goldcorp Inc (G.TO: Quote) advanced 4.9 percent to C$21.16, while gold hovered just below last week's 13-month high.

The shares of Cameco Corp (CCO.TO: Quote) rose 0.6 percent to C$16.76. The company is slowly expanding the world's biggest uranium mine, betting utilities that are currently well-supplied will need the radioactive metal in coming years.   Continued...

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