CANADA STOCKS-TSX climbs as energy shares follow oil prices higher

Wed Nov 5, 2014 5:02pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

By John Tilak
    TORONTO, Nov 5 (Reuters) - Canada's main stock index
advanced more than 1 percent on Wednesday as a rebound in oil
prices and upbeat U.S. economic data fueled a jump in the
languishing energy sector. 
    Investors cheered news of Republicans winning control of the
U.S. Senate and data showing U.S. private jobs growth topped
market expectations.  
    But the price of bullion plunged to a four-year low
after the U.S. election results, triggering a sell-off in shares
of gold miners. 
    The benchmark TSX, which has been under pressure in recent
weeks because of choppy commodity prices, is up about 7 percent
since dropping to an eight-month low last month.
    Energy shares have a beating in recent weeks over concerns
about ample supply and sluggish demand. The group has shed a
quarter of its value since the middle of June.
    "At current levels, we see a lot of interest and a lot of
value in the whole spectrum of energy names," said Maarten
Bloemen, an executive vice president and portfolio manager at
Franklin Templeton Investments. 
    "The way that the stocks have reacted so violently gives us
an opportunity to pick some of these quality names," he said.
    "The market is extremely news-sensitive right now. A little
bit of news that's happening in the Middle East can move oil
prices, and equities are pretty sensitive to that," added
Bloemen, who helps manage about $2.5 billion in assets.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 157.83 points, or 1.1 percent, at 14,548.26.
Eight of the 10 main sectors on the index were higher.
    Shares of energy producers rose. Suncor Energy Inc 
gained 3.4 percent to C$38.52, and Canadian Natural Resources
Ltd was up 4 percent at C$38.26.
    TransCanada Corp advanced 3 percent on hopes that a
Republican-controlled Senate will lead to the approval of the
Keystone pipeline. 
    Financials, the index's most heavily weighted sector, added
1 percent. Royal Bank of Canada advanced 1.2 percent to
C$81.27, and Toronto Dominion Bank rose 0.8 percent to
C$55.98.
    The gold-mining sector dived 4.3 percent, reflecting
weakness in the price of the commodity. Barrick Gold Corp
 lost 4.3 percent to C$12.50.
    Magna International Inc reported a 47 percent
increase in third-quarter earnings. Shares of the auto parts
maker shot up 5.8 percent to C$116.97. 
    Tim Hortons Inc rose 0.6 percent, to C$92.39, after
the coffee chain's third-quarter profit beat market estimates.
 

 (Editing by James Dalgleish and Steve Orlofsky)