TSX rises to 16-month high, led by resource shares

Fri Oct 21, 2016 5:15pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose to a 16-month high on Friday as shares of energy and materials companies led broad-based gains and investors raised bets on a rate cut from the Bank of Canada.

For the week, the commodity-linked TSX rose 2.4 percent, helped by a 15-month high on Wednesday for U.S. crude oil. It was the biggest one-week gain for the index since March.

"People might be speculating that if the loonie goes on another down-leg that could help the Canadian economy again," said Colin Cieszynski, senior market analyst at CMC Markets Canada.

The Canadian dollar tumbled to a seven-month low against the U.S. dollar after weaker-than-expected domestic retail sales and inflation data fueled interest rate cut bets.

A weaker currency increases the competitiveness of Canada's exporters.

The Toronto Stock Exchange's S&P/TSX composite index closed up 91.12 points, or 0.61 percent, at 14,939.04, its highest close since June 2015.

The most influential movers on the index included Suncor Energy Inc, which rose 1.1 percent to C$39.19, and Tourmaline Oil Corp, which jumped 6.4 percent to C$38.73.

Canadian rig contractor Precision Drilling Corp reported a smaller-than-expected quarterly loss, helped by lower operating costs, and raised its capital budget for the year after winning new contracts.   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  Canada's main stock index was little changed on Monday as weakness in financial and energy shares offset gains in the materials sector.   REUTERS/Mark Blinch (CANADA - Tags: BUSINESS) - RTR3VBOL