TORONTO (Reuters) - Canada’s main stock index rebounded from recent sharp declines on Wednesday as a jump in the price of Brent crude oil helped support shares of energy producers.
The index lost more than 3 percent in the previous three sessions as investors’ bets on a U.S. Federal Reserve interest rate hike boosted the U.S. dollar and hit commodity prices. Canada is a major exporter of oil, metals and other commodities.
As Brent LCOc1 prices rose, shares in major Canadian producers followed, with Suncor Energy Inc (SU.TO) up 1.4 percent at C$36.02 and Canadian Natural Resources Ltd (CNQ.TO) adding 1.2 percent to C$36.81.
Crescent Point Energy (CPG.TO) gained 1.8 percent to C$28.21 after reporting a jump in production.
The recent losses on the Toronto stock market’s benchmark TSX index had wiped out most of its gains this year.
“We had quite a shakeout yesterday, and it’s all green today,” said Adrian Mastracci, portfolio manager at KCM Wealth Management. “It’s going to be volatile this year, from one day to another, from one month to another.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 97.44 points, or 0.67 percent, at 14,739.20, with nine of its 10 main sectors higher. The index hit a five-week low on Tuesday.
Valeant Pharmaceuticals International (VRX.TO) had the single biggest negative influence on the index, down 3.1 percent at C$247.51. Investors were reacting as Valeant faced a rival bid for Salix Pharmaceuticals Ltd SLXP.O from Endo International Plc (ENDP.O), which offered about $11 billion in cash and stock. Valeant had offered about $10 billion in cash.
Reporting by Alastair Sharp; Editing by Meredith Mazzilli, James Dalgleish and Peter Galloway