May 24, 2016 / 3:23 PM / in a year

CANADA STOCKS-TSX rises to a 7-month high, led by banks and energy stocks

* TSX up 97.61 points, or 0.7 percent, to 14,017.19

* Nine of the TSX’s 10 main groups were higher

TORONTO, May 24 (Reuters) - Canada’s main stock index rose to a seven-month high on Tuesday, led by the financials and energy groups as oil rallied and Wall Street stocks moved higher.

The index, which was closed for a holiday on Monday, pushed above the 14,000 threshold for the first time since October. It has rebounded more than 21 percent from its almost 3-1/2-year low of 11,531.22 in January.

The rally for financials comes as banks were among the biggest gainers on Wall Street amid speculation on the possibility of a June interest rate hike from the U.S. Federal Reserve.

Royal Bank of Canada rose 1.1 percent to C$78.74, and Bank of Nova Scotia advanced 1.7 percent to C$64.18, while the overall financials group was up 1.4 percent.

Canada’s biggest banks still are expected to set aside more funds to cover bad loans to the oil and gas sector, eating into their profits when they announce second quarter results this week.

The energy group climbed 1.3 percent, including a 2.9 percent gain for Suncor Energy Inc to C$35.51.

The rally in energy stocks comes after authorities in Canada lifted evacuation orders on Monday for all work camps and some additional oil facilities that had been shuttered when a massive wildfire threatened the nation’s energy hub, a significant step for companies eager to restart production.

Oil rose as investors awaited crude oil inventory data from the United States that was expected to show a shrinking supply overhang. U.S. crude prices were up 1.1 percent to $48.6 a barrel.

Industrials rose 0.9 percent, led by railway stocks, while the consumer staples group was up 1.7 percent.

At 11:07 a.m. EDT (1507 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 97.61 points, or 0.7 percent, to 14,017.19. It touched its highest since Oct. 9 at 14,025.82.

Nine of the index’s 10 main groups were higher. The one index that was lower was the materials group, which includes precious and base metals miners and fertilizer companies. It lost 2.6 percent.

Barrick Gold Corp fell 4.9 percent to C$22.68, while Goldcorp Inc was down 4 percent at C$21.86.

Gold fell more than 1 percent to a four-week low as hawkish comments from Federal Reserve officials in the previous session sent the dollar to a two-month high against a currency basket. (Reporting by Fergal Smith; Editing by Bill Trott)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below