TORONTO (Reuters) - Canada's main stock index advanced more than 1 percent on Wednesday as a rebound in oil prices and upbeat U.S. economic data fueled a jump in the languishing energy sector.
Investors cheered news of Republicans winning control of the U.S. Senate and data showing U.S. private jobs growth topped market expectations.
But the price of bullion plunged to a four-year low after the U.S. election results, triggering a sell-off in shares of gold miners.
The benchmark TSX, which has been under pressure in recent weeks because of choppy commodity prices, is up about 7 percent since dropping to an eight-month low last month.
Energy shares have a beating in recent weeks over concerns about ample supply and sluggish demand. The group has shed a quarter of its value since the middle of June.
"At current levels, we see a lot of interest and a lot of value in the whole spectrum of energy names," said Maarten Bloemen, an executive vice president and portfolio manager at Franklin Templeton Investments.
“The way that the stocks have reacted so violently gives us an opportunity to pick some of these quality names,” he said.
“The market is extremely news-sensitive right now. A little bit of news that’s happening in the Middle East can move oil prices, and equities are pretty sensitive to that,” added Bloemen, who helps manage about $2.5 billion in assets.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 157.83 points, or 1.1 percent, at 14,548.26. Eight of the 10 main sectors on the index were higher.
TransCanada Corp (TRP.TO) advanced 3 percent on hopes that a Republican-controlled Senate will lead to the approval of the Keystone pipeline.
The gold-mining sector dived 4.3 percent, reflecting weakness in the price of the commodity. Barrick Gold Corp (ABX.TO) lost 4.3 percent to C$12.50.
Magna International Inc (MG.TO) reported a 47 percent increase in third-quarter earnings. Shares of the auto parts maker shot up 5.8 percent to C$116.97.
Tim Hortons Inc THI.TO rose 0.6 percent, to C$92.39, after the coffee chain’s third-quarter profit beat market estimates.
Editing by James Dalgleish and Steve Orlofsky