TORONTO (Reuters) - Canada’s main stock index rose in choppy trading on Tuesday, recovering slightly from a sharp selloff in the previous session as higher commodity prices boosted shares of energy and gold producers.
Oil prices rose after earlier tumbling to a five-year low, weighed by fears of increasing supply and sluggish demand, and have lost about 40 percent since June.
Shares of energy companies, which dropped nearly 7 percent in the previous session, rebounded slightly. A weaker U.S. dollar led to a surge in the price of bullion, helping drive up shares of gold miners.
Investors should brace for more choppiness in both equities and commodities, but look to selectively acquire assets at discount prices, said Adrian Mastracci, portfolio manager at KCM Wealth Management.
“We’ve had a lot of volatility and I don’t think we’re done with that yet,” he said. “If you’re a long-term investor, you need to carry on with the game plan.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 51.56 points, or 0.36 percent, at 14,195.73. Seven of the 10 main sectors on the index ended higher.
In the oil and gas group, Canadian Natural Resources Ltd CNQ.TO advanced 0.9 percent to C$35.97, and Suncor Energy Inc SU.TO climbed 1 percent to C$34.02.
Talisman Energy Inc’s TLM.TO shares shot up 11.9 percent, to C$4.81, after the company confirmed it was approached by several suitors for various transactions.
The gold mining sector jumped 4.4 percent, with Goldcorp Inc G.TO advancing 4.1 percent to C$23.23.
Financials gave back 0.3 percent, with insurer Manulife Financial Corp MFC.TO falling 1.6 percent to C$22.45 and rival Great-West Lifeco GWO.TO dropping 1.3 percent to C$32.84.
In other corporate news, AGF Management Ltd AGFb.TO said it would cut its quarterly dividend by 70 percent, sending its shares tumbling 14.6 percent to C$8.28.
Editing by Meredith Mazzilli and G Crosse