October 7, 2015 / 9:00 PM / 2 years ago

CANADA STOCKS-TSX extends rally as energy gains despite oil price slip

(Adds strategist comment, updates prices to close)

* TSX ends up 221.09 points, or 1.62 percent, at 13,868.35

* Nine of the TSX's 10 main groups rise

* Bombardier slumps after planemaker says Airbus sale talks ended

By Alastair Sharp

TORONTO, Oct 7 (Reuters) - Resource stocks helped extend a rally in Canada's main stock index on Wednesday despite a drop in crude oil prices, while Bombardier Inc tumbled after the planemaker said CSeries talks with Airbus had ended.

The energy sector rose 3 percent and materials climbed 2.5 percent as investors bid up the beaten-down groups.

"To an important degree it reflects the fact that everybody got so negative," said John Johnston, chief strategy officer at Davis-Rea. "When things are that negative you don't need good news to go up, you just need less bad news."

Cash-strapped Bombardier was the single biggest loser, plunging 13 percent to C$1.54 a day after Reuters reported talks between Montreal-based planemaker and Airbus, which both companies later said had failed.

Energy and materials stocks are down around 17-18 percent so far this year, hurt by a slowdown in global growth that has hit demand for the commodities they produce.

Canadian Natural Resources was among the top gainers on the day, surging 5.7 percent to C$31.23, while pipeline company Enbridge Inc rallied 3.1 percent to C$55.89.

The Toronto Stock Exchange's S&P/TSX composite index closed up 221.09 points, or 1.62 percent, at 13,868.35, for its fourth straight gain and highest close since mid-August.

Consumer staples was the only sector that failed to rise. There were 11 gainers for every three decliners.

Teck Resources Ltd was also a major mover, surging 14.3 percent to C$8.89 after Franco-Nevada Corp said it agreed to pay Teck $610 million to help fund operations at the Antamina mine in Peru in exchange for a share of silver production.

The deal comes just two days after Franco-Nevada revised its deal with First Quantum Minerals Ltd for a project in Central America. First Quantum shares have almost doubled in price over the last several sessions, including Wednesday's 18.2 percent rise to C$8.85

Other influential gainers included Canadian National Railway , which rose 2.5 percent to C$78.36 and Toronto-Dominion Bank, which added 1.4 percent to C$53.50.

CN Rail's industrials sector climbed 1.7 percent, while the Bank of Nova Scotia's financials group gained 1.2 percent.

Additional reporting by Solarina Ho; Editing by Meredith Mazzilli and Diane Craft

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