TSX edges up as higher commodity prices support resource stocks

Wed May 11, 2016 5:04pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index edged higher on Wednesday, led by the energy and materials groups after a drop in oil inventories pushed crude higher and gold rebounded from nearly two-week lows.

The index has rebounded from a nearly-four week low on Monday as oil rallied but its recovery has held short of the six-month high of 13,972.62 reached at the end of April.

"There seems to be a lot of uncertainty about gold and oil pricing," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates.

Investors are grappling with the impact of lower oil prices on oil company operations and how soon production will come back in Alberta, he added.

Workers for one of the largest oil sands companies affected by a massive wildfire in northern Canada will begin returning to the shuttered facilities on Thursday, a union official said.

Encana Corp (ECA.TO: Quote) surged 13.4 percent to C$8.97, while the overall energy group gained 1 percent.

U.S. crude oil futures CLc1 settled at $46.23 a barrel, up 3.52 percent, after the U.S. government unexpectedly said crude inventories fell the first time since March.

The materials group, which includes precious and base metals miners and fertilizer companies, added 1.1 percent.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.     REUTERS/Mark Blinch