TSX bounces from Brexit slide, scoring largest gain in seven weeks

Tue Jun 28, 2016 5:07pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index scored its largest gain in seven weeks on Tuesday, paring some of the losses inflicted in the prior two sessions after Britain's shock vote to leave the European Union as oil rallied and investors sought out bargains.

Banks and energy companies, both of which had fallen heavily after Thursday's vote, led the rebound. The financials group rose 1.4 percent, while energy stocks climbed 2.4 percent as oil rallied.

Greater confidence that Brexit-related issues will be dealt with has encouraged investors to look for bargains, said Brian Pow, vice president, research at Acumen Capital Partners.

"Equities ultimately are still in favor just given the low interest rate environment," he added.

Toronto-Dominion Bank (TD.TO: Quote) rose 1.5 percent to C$55.32 and Royal Bank of Canada (RY.TO: Quote) advanced 1.6 percent to C$76.38.

"Our banks always demonstrate that they got real resilience ... trying to paint a more negative story around Brexit won't stand too long," Pow said.

Suncor Energy Inc (SU.TO: Quote) rose 1.8 percent to C$34.94, while U.S. crude oil futures CLc1 settled $1.52 higher at $47.85 a barrel.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 152.9 points, or 1.12 percent, at 13,842.69.   Continued...

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