CANADA STOCKS-TSX rises as higher oil supports energy, Bombardier rallies

Wed Apr 27, 2016 4:41pm EDT
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(Adds portfolio manager quotes, details on energy, materials, railway, healthcare stocks, updates prices)

* TSX closed up 78.22 points, or 0.57 percent, at 13,887.66

* Seven of the TSX's 10 main groups ended higher

By Fergal Smith

TORONTO, April 27 (Reuters) - Canada's main stock index rose on Wednesday as higher oil prices supported energy stocks, while financial and materials stocks also advanced after the Federal Reserve kept interest rates unchanged.

The Toronto Stock Exchange (TSX) has rallied 20 percent since January, helped by a rebound in U.S. crude oil from a 12-year low.

Investor sentiment improves when oil is trading above $40 a barrel, said Barry Schwartz, portfolio manager at Baskin Financial Services, while a rallying Canadian dollar has signaled strength in the domestic economy, adding to support for the index.

The loonie reached a new nine-month high at C$1.2571, although ended only slightly higher after the Fed left the door open to a June rate hike.

Schwartz expects the index to "blow past" the 14,000 threshold that has capped the rally since January if the higher oil and Canadian dollar trend continues.   Continued...