TSX rises as higher oil prices support energy stocks

Mon Aug 15, 2016 4:54pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Monday as the energy sector benefited from higher oil prices, but gains were restrained as investors waited for clues this week on the outlook for U.S. monetary policy.

The index .GSPTSE has rallied 28 percent since hitting a 3-year low in January, helped by a rebound in commodity prices and low global interest rates. On Thursday it reached a 13-month high of 14,855.69, raising concerns that the rally might be overdone.

"We still think that markets are trading at elevated valuation ... earnings and revenue trends on both the TSX (Toronto Stock Exchange) and S&P (500) haven't been strong," said Manash Goswami, portfolio manager, First Asset Investment Management Inc.

The U.S. Federal Reserve's minutes on its July policy meeting are scheduled to be released on Wednesday.

Investors will hold off on making big bets until they get a sense of whether the Fed has become more inclined to raise interest rates this year, Goswami said.

The Toronto Stock Exchange's S&P/TSX composite index closed up 29.57 points, or 0.2 percent, at 14,777.02.

Five of the index's 10 main groups ended in positive territory.

The energy sector advanced 1.2 percent, helped by higher oil prices on growing speculation that producers could take measures to support prices in an oversupplied market.   Continued...

People walk past an electronic board displaying the midday TSX index in Toronto February 16, 2011.  REUTERS/Mark Blinch