TORONTO (Reuters) - Canada’s main stock index gained half a percent on Monday as a jump in the prices of crude oil and gold helped oil and gas stocks and mining issues finish higher.
Energy stocks gained almost 2 percent, rising in tandem with a surge in crude prices, which rose after Saudi Arabia hiked its oil prices for Asia for a second month in a row and as U.S inventories data showed barely a rise last week. [O/R]
Canadian Natural Resources added 2.4 percent to C$40.25 and Enbridge Inc rose 1.2 percent to C$61.39. Crescent Point Energy Co climbed 3.2 percent to C$30.80.
But one fund manager said that while some energy names, such as Crescent Point, Suncor Energy Inc and Teck Resources Ltd, should be attractive for patient investors, choppy trading will likely continue.
“It’s a little unwise to chase some of the stocks in those sectors because they will continue to be volatile going forward,” said Elvis Picardo, strategist at Global Securities in Vancouver.
“For someone with a longer-term view these are really great levels to be adding to positions or even setting up new positions,” he said.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 74.03 points, or 0.49 percent, at 15,100.65. Six of the ten main sectors gained.
Turquoise Hill Resources Ltd jumped 9.8 percent to C$4.47 after Mongolia’s prime minister said the country will move ahead will development of a copper mine in which the Rio Tinto-controlled company owns a majority stake.
Canadian equities were also boosted by a much weaker-than-expected U.S. jobs report for March on Friday, the latest in a recent string of weaker U.S. economic data adding to growing speculation the Federal Reserve will delay a much-anticipated interest rate hike.
“I think it’s positive for risk assets and positive for equities because rates aren’t really going up aggressively in the next little bit,” said Bryden Teich, associate portfolio manager at Avenue Investment Management.
Gold hit a seven-week high during the session, burnished by the possibility of a U.S. rate hike delay.
Two of the most influential movers on the index were gold miners: Barrick Gold Corp, which rose 5.4 percent to C$15.74, and Goldcorp Inc, which advanced 1.8 percent to C$24.09.
Additional reporting by Solarina Ho; Editing by Peter Galloway and Meredith Mazzilli