TORONTO (Reuters) - Canada’s main stock index notched its sixth straight gain and its highest close since September on Thursday, led up by big banks and industrial and energy shares.
Oil and gas shares were up 1.5 percent as a rise in oil prices helped some producers, while the overall long-term outlook for the sector was seen as less pessimistic.
“You’ve seen oversold sectors, particularly within the energy complex, starting to see some very early evidence of stability,” said Sid Mokhtari, a market technician at CIBC World Markets. “People at minimum don’t want to be short the complex.”
“It‘s, so far, looking very good - a rebound primarily from the oil in the energy sector,” said John Kinsey, portfolio manager at Caldwell Securities.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 112.71 points, or 0.74 percent, at 15,326.31.
Advancing issues outnumbered decliners by 142 to 95, for a 1.49-to-1 ratio on the upside. Ten stocks posted new 52-week highs and two posted new lows in the session.
CIBC’s Mokhtari said that while further upside is possible, resistance will likely surface in the 15,600-15,800 range.
All of the index’s 10 main groups were higher, though a number of gold-mining stocks struggled amid falling bullion prices. [GOL/]
Financial stocks, which include Canada’s largest banks, rose 0.7 percent. The sector makes up nearly 35 percent of the index’s weight.
Caldwell’s Kinsey noted the group had been struggling but that sentiment has become more positive recently after many of the major banks increased their dividends.
“In this low-rate environment, that’s pretty good,” he said.
Additional reporting by Solarina Ho; Editing by Meredith Mazzilli and Peter Galloway