CANADA STOCKS-TSX rebounds as oil rallies, led by banks, energy stocks

Fri Feb 12, 2016 11:05am EST
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* TSX up 201.36 points, or 1.67 percent, to 12,288.73

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

TORONTO Feb 12 (Reuters) - Canada's main stock index rebounded Friday after five days of losses, led by banks and energy stocks as crude oil prices rallied and after U.S. retail sales data offered encouragement about the economic outlook.

Relative calm returned to financial markets after a week of turmoil in which investors worried about the impact of negative interest rates on banking profits.

U.S. consumer spending appeared to have regained its momentum in January, supporting the possibility of the Federal Reserve continuing to raise interest rates this year.

Still, the index is on track to lose 3.7 percent for the week, having hit a three-week low on Thursday as disappointing corporate earnings added to broad investor unease about the global economy.

Cenovus Energy Inc rose 2.9 percent to C$14.36. The oil producer said it may sell up to $5 billion of stock, debt or other securities, a day after it announced a dividend cut, as the company shores up its balance sheet amid a slump in oil prices.

The overall energy group rose 2.8 percent as crude oil prices rallied on prospects of a coordinated production cut. It included a 3.6 percent rise in the shares of Suncor Energy Inc to C$30.49.

U.S. crude prices jumped 10 percent to $28.84 a barrel.   Continued...