TORONTO (Reuters) - Canada’s main stock index gained on Tuesday as rallies in the prices of oil and copper boosted shares of companies in its heavyweight energy and mining sectors.
The energy group climbed 2.8 percent as oil prices jumped in the wake of a Saudi vow to reduce exports and as U.S. shale production showed signs of slowing, while the materials group, which includes precious and base metals miners and fertilizer companies, added 0.7 percent.
The two sectors combine to account for almost a third of the index’s weight, and have dragged it down so far this year.
“You can see days like today where oil jumps significantly, but you better be quick on that button because tomorrow you could see it reverse,” said Allan Small, a senior investment advisor at HollisWealth. “It’s a game I don’t want to play.”
The Toronto Stock Exchange’s S&P/TSX composite index settled up 73.68 points, or 0.49 percent, at 15,202.37. It is trading down so far this year, compared to 8 to 20 percent gains for major U.S. indexes.
Small said that Canadian investors are in a tough spot, as those who have allocated more to U.S. stocks watch a strengthening loonie wash out any gains.
With copper < CMCU3> trading at its highest in more than two years, investors were also buying up shares of some of Canada’s biggest miners of the metal, with First Quantum Minerals Ltd up 6.5 percent to C$14, Lundin Mining Corp adding 4.8 percent to C$8.38, and Hudbay Minerals Inc gaining 7.8 percent to C$9.35. [MET/L]
The most influential movers on the index also included Suncor Energy Inc, which rose 1.6 percent to C$38.98, and Canadian Natural Resources, up 1.9 percent at C$38.04.
The Canadian index’s third dominant sector, financials, made slight gains led by insurers as bond yields gained, which reduces the value of their liabilities.
Manulife Financial Corp added 1.3 percent to C$25.79 and Sun Life Financial Inc gained 1.7 percent to C$48.13.
Westshore Terminals Investment Corp jumped 13.7 percent to C$23.97. Royal Bank of Canada raised its view on the coal shipper’s stock to “outperform” and increased its target price to C$30 from C$24.
Editing by Nick Zieminski and James Dalgleish