CANADA STOCKS-TSX hits new 2016 high, energy stocks jump

Thu Mar 3, 2016 4:37pm EST
 
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(Adds analyst comment, updates prices)

* TSX ends up 105.72 points, or 0.81 percent, at 13,123.65

* Eight of the TSX's 10 main groups rise

By Alastair Sharp

TORONTO, March 3 (Reuters) - Canada's main stock index hit a 2016 high on Thursday as energy stocks rose despite a petered out oil rally, and other resource stocks gained as commodity prices more generally reflected increased confidence in prospects for global growth.

Among the gainers was Canadian Natural Resources Ltd , which surged 8.9 percent to C$32.85 after it reduced its 2016 capital expenditure plan and eyed further cuts in the future.

Belt-tightening across the industry is being seen as necessary and prudent to deal with low oil prices.

"They're all making the right moves; they continue to cut costs," said Brian Pow, an equity analyst at Acumen Capital Partners in Calgary. "When they come out the other side there's going to be some pretty significant leverage that comes through from the top line."

The energy sector climbed 2.8 percent, but oil prices barely moved higher as growing U.S. crude stockpiles overshadowed bullish sentiment that had built up in the oil market this week.   Continued...