CANADA STOCKS-TSX hits one-week high on U.S. data, oil prices

Fri Oct 17, 2014 4:24pm EDT
 
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* TSX up 174.71 points, or 1.24 percent, at 14,227.68
    * Eight of 10 main index sectors advance
    * Energy shares climb with oil price

    By John Tilak
    TORONTO, Oct 17 (Reuters) - Canada's main stock index
reached its highest in a week on Friday as positive U.S.
economic data and a rise in oil prices boosted the energy
sector.
    Data showing that U.S. housing starts and permits rose in
September signaled the economic recovery might be on track.
 
    Upbeat quarterly earnings from major U.S. banks fueled the
positive sentiment further.
    Stock markets have been in a corrective phase over the past
month, weighed on by worries over global economic growth, oil
demand and the direction of U.S. Federal Reserve policy. 
    The Toronto stock market's energy group, which has been hit
the hardest, rebounded for a second straight session, jumping
1.3 percent on Friday.
    Investors appeared to be subscribing to a perception that
some sectors fell too steeply in the selloff, making their
valuations more appealing. 
    "What this bout of volatility has done is shaken us out of
this complacency, and that's not really a bad thing," said Elvis
Picardo, strategist at Global Securities in Vancouver.
    "If the markets are fundamentally on solid ground, then big
dips like this tend to be classic buying opportunities," Picardo
said.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 174.71 points, or 1.24 percent, at
14,227.68. Eight of the 10 main sectors on the index were
higher.
    Financials, the index's most heavily weighted sector,
climbed 2 percent. Toronto-Dominion Bank advanced 2.7
percent to C$53.47, and Bank of Nova Scotia added 2.2
percent to C$67.31.
    Shares of energy producers were helped by higher oil prices.
Canadian Natural Resources Ltd rose 2.9 percent to
C$38.65, and Suncor Energy Inc gained 1.6 percent to
C$37.73.

 (Editing by Peter Galloway and Grant McCool)