TSX broadly higher as oil rises, Brexit fears recede

Mon Jun 20, 2016 4:55pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Monday, with financial and energy stocks leading a broad rally as investors returned to equity markets on rising expectations that Britain will vote to remain in the European Union later this week.

The Toronto Stock Exchange S&P/TSX composite index .GSPTSE settled up 113.37 points, or 0.82 percent, at 14,015.14. All 10 of its main groups gained, with advancers outnumbering decliners by 5.5-to-1.

That lagged the sharper gains seen in European indices, which jumped as recent momentum for the campaign for Britain to leave the EU showed signs of waning. The vote is due on Thursday. [.EU][.L]

"I still think you're voting with the wind here, I don't know which way this is going to go," said Rick Hutcheon, president at RKH Investments. "It's probably still too close to call."

The most influential movers on the index included pipeline company Enbridge Inc (ENB.TO: Quote), which added 2.1 percent to C$53.79, and Manulife Financial Corp (MFC.TO: Quote), up 2.2 percent at C$18.37.

The energy group climbed 2 percent and financials gained 0.7 percent. Combined, the two groups account for 56 percent of the index's overall weight.

Oil prices rose 3 percent, helped by the waning Brexit risk and in anticipation of peak summer driving demand. [O/R]

Royal Bank of Canada (RY.TO: Quote), the country's largest bank by market capitalization, rose 0.5 percent to C$78.01.   Continued...

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