January 16, 2015 / 4:18 PM / 3 years ago

CANADA STOCKS-TSX jumps as oil and gold shares rebound with commodity prices

3 Min Read

* TSX up 156.85 points, or 1.1 percent, at 14,198.67

* Seven of the 10 main index sectors advance

* Canadian Natural, Suncor among heavyweight gainers

By John Tilak

TORONTO, Jan 16 (Reuters) - Canada's main stock index climbed on Friday as shares of oil companies and gold miners gained along with crude and bullion prices after data showed a big drop in U.S. consumer prices in December and steady inflation.

The figures were seen as spurring the U.S. Federal Reserve to be more cautious about raising interest rates.

Oil prices, under pressure since June due to concerns about oversupply, strengthened after the International Energy Agency said that it expects "the tide will turn".

The gain on the Toronto stock market's benchmark TSX index came after declines in each of the last five sessions. It looked on track to record a drop this week, when market volatility surged due to choppy oil prices and Switzerland's move to abandon its more than three-year-old ceiling on the franc's value against the euro.

"The market is adjusting to dramatically lower energy prices and a higher U.S. dollar, but the net net effect in the longer term is that it's going to be a benefit to the global economy," said Stan Wong, director of wealth management and portfolio manager at Scotia McLeod.

"Volatility is certainly going to take a step up this year, but that only presents an opportunity to take advantage of share prices if they become cheap," he added.

The Toronto Stock Exchange's S&P/TSX composite index was up 156.85 points, or 1.1 percent, at 14,198.67. It is down nearly 3 percent since the start of the year.

"You will continue to see the U.S. market outperform Canada," Wong said. "Energy is the wildcard, but it also presents the greatest opportunity. The TSX  could rebound with any recovery in energy prices."

Seven of the 10 main sectors on the index were higher on Friday.

Shares of oil producers jumped 4.5 percent. Canadian Natural Resources Ltd added 6.1 percent to C$34.64, and Suncor Energy Inc rose 4.5 percent to C$35.76.

The gold-mining sector gained 3.4 percent, helped by a higher bullion price. Barrick Gold Corp rose 4.1 percent to C$14.18, and Goldcorp Inc was up 3.9 percent at C$28.23.

$1=$1.20 Canadian Editing by Peter Galloway

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