TORONTO (Reuters) - Canada’s main stock index ended about 1.6 percent higher on Monday as oil prices jumped on hopes that they might be nearing a bottom, sending shares of energy producers sharply higher.
Investors have been rushing back to the battered energy sector to take advantage of appealing valuations, with the oil price rallying off multiyear lows since late last week as some concerns about excess supply began to ease. Shares of energy producers added 4.5 percent on Monday, adding to a 4.7 percent gain in the previous session.
The strength helped offset sluggish economic data from China and a slowdown in Canadian manufacturing sector growth.
“We’re seeing roller-coaster investing. Nobody knows which direction the market is going to go on any given day,” said Adrian Mastracci, portfolio manager at KCM Wealth Management, who cautions that investors should expect more volatility this year.
“I like energy, but there is some risk there. You try to step up and buy some, when nobody else wants it,” he added.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 226.99 points, or 1.55 percent, at 14,900.47. Nine of the 10 main sectors on the index were higher.
Canadian Oil Sands Ltd COS.TO shot up 20.4 percent to C$9.45, following a 20.6 percent jump on Friday, as investors cheered the company’s recent aggressive moves to counter lower oil prices.
Editing by Meredith Mazzilli and Lisa Shumaker