TSX rises more than 1 percent as energy soars on OPEC deal

Wed Sep 28, 2016 5:48pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose more than one percent on Wednesday as energy stocks soared on a deal by major oil producers to limit output, while the financials and materials groups also gained ground.

Canadian Natural Resources Ltd (CNQ.TO: Quote) jumped 6.9 percent to C$41.17, while Suncor Energy Inc (SU.TO: Quote) advanced 4.1 percent to C$35.58 and the overall energy group was up 5.3 percent.

The OPEC news got investors excited as it will tighten up supply in the oil market, said Manash Goswami, portfolio manager at First Asset Investment Management Inc.

U.S. crude CLc1 prices settled up $2.38 at $47.05 a barrel after sources told Reuters that the Organization of the Petroleum Exporting Countries struck a deal to limit crude output at its policy meeting in November. [O/R]

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 173.39 points, or 1.19 percent, at 14,731.43.

It touched its highest intraday since Friday at 14,740.07.

The financials group climbed 0.7 percent, including gains for the country's heavyweight bank stocks.

Royal Bank of Canada (RY.TO: Quote) rose 0.9 percent to C$81.46, while Toronto-Dominion Bank (TD.TO: Quote) was up 0.7 percent at C$58.33.   Continued...

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