November 24, 2015 / 12:56 PM / 2 years ago

TSX rises on solid gains for resource stocks

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch

TORONTO (Reuters) - Canada’s main stock index rose on Tuesday, as strength in energy and materials stocks offset weakness in other sectors, such as telecoms and industrials.

“Oil is up over a dollar and gold is up around $7 so that’s helping our commodities,” said John Kinsey, portfolio manager at Caldwell Securities Ltd.

The energy group climbed 1.9 percent after the downing of a Russian fighter jet near the Syrian-Turkish border pushed crude oil prices sharply higher.

Encana Corp (ECA.TO) advanced 6.5 percent to C$11.36, while Suncor Energy Inc (SU.TO) was up 0.9 percent at C$37.00.

The materials group rose 2.1 percent, led by a 3.4 percent gain for Barrick Gold Corp (ABX.TO) to C$9.84, helped by firmer base and precious metal prices.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 25.45 points, or 0.19 percent, at 13,407.83, with just four of the index’s 10 main groups in positive territory.

On the other side of the scale sat BCE Inc (BCE.TO), which declined 2.7 percent to C$56.45 after raising C$750 million in a rare bought-deal share sale.

The two main railway stocks were also a drag, including a 1.3 percent drop for Canadian National Railway (CNR.TO) to C$78.06.

Bombardier Inc (BBDb.TO) declined 4.8 percent to C$1.18 after it warned that a previously announced business jet production cut will drive down revenue in 2016.

Financials dipped 0.1 percent, with investors waiting for next week’s string of bank earnings reports.

“I think expectations are very low,” said Kinsey about bank earnings. “So I don’t think if they’re soft or a bit soft that it will be a surprise to many people. They haven’t acted very well.”

U.S. crude CLc1 prices settled at $42.87 a barrel, up 2.7 percent, while Brent crude LCOc1 added 2.9 percent to $46.11.[O/R]

Gold futures GCc1 rose 0.7 percent to $1,074.8 an ounce. [GOL/]

Copper prices CMCU3 advanced 2.6 percent to $4,608.15 a tonne. [MET/L]

Additional reporting by Alastair Sharp; editing by Paul Simao and Diane Craft

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