TSX rallies to a two-week high, led by energy as oil surges

Mon May 16, 2016 5:03pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rallied more than one percent to a two-week high on Monday, with energy stocks leading broad-based gains as oil surged.

Oil prices reached six-month highs on worries about global supply outages and as long-time bear Goldman Sachs sounded more positive on the market. [O/R]

"Over this year Canada looks like an attractive investment opportunity, I think oil is going to finish higher than where it is right now," said Kevin Headland, senior investment strategist at Manulife Investments.

U.S. crude CLc1 prices were up 3.6 percent to $47.89 a barrel, while Brent crude LCOc1 added 2.6 percent to $49.08.

The most influential movers on the index included Suncor Energy Inc (SU.TO: Quote), up 2.7 percent at C$34.98, and Canadian Natural Resources (CNQ.TO: Quote), which added 2.1 percent at C$37.73.

Barrick Gold Corp (ABX.TO: Quote) advanced 2.3 percent to C$24.41, and Goldcorp Inc (G.TO: Quote) rose 2.6 percent to C$23.85.

The energy group climbed 2.9 percent, while the materials group, which includes precious and base metals miners and fertilizer companies, added 1.9 percent.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 144.91 points, or 1.05 percent, at 13,893.49.   Continued...

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