CANADA STOCKS-TSX bounces higher as banks, energy shares gain

Tue Jun 30, 2015 11:26am EDT
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By Alastair Sharp

TORONTO, June 30 (Reuters) - Canada's main stock index regained some ground on Tuesday after Monday's precipitous drop, with banks rebounding and rising oil prices helping energy stocks.

The Toronto Stock Exchange's S&P/TSX composite index was up 48.27 points, or 0.33 percent, at 14,538.42 at midmorning. It fell more than 2 percent on Monday.

"Eventually cooler heads prevail and good quality companies look cheaper after a pullback yesterday and investors come back to the markets," said Kevin Headland, director of capital markets and strategy at Manulife Asset Management.

The upside, however, looks limited, Headland said, with data on Tuesday showing the Canadian economy shrank unexpectedly in April.

"Canadian economic growth prospects are muted at best," he said.

Heavily weighted gainers on the index included Suncor Energy Inc, which rose 1.6 percent to C$34.32, and Valeant Pharmaceuticals International Inc, which advanced 0.7 percent to C$274.86.

The index's energy group climbed 0.4 percent, with U.S. crude prices up 1 percent at $58.90 a barrel, while Brent crude added 1.9 percent to $63.17.

Financial shares climbed 0.6 percent. Nine of the index's 10 main sectors were higher, with roughly similar numbers of advancers and decliners.   Continued...