TORONTO (Reuters) - Canada’s main stock index closed above 16,000 for the first time on Monday, fueled primarily by influential resource stocks including Canadian Natural Resources Ltd, and cannabis producer Canopy Growth.
The Toronto Stock Exchange’s S&P/TSX composite index rose 49.27 points, or 0.31 percent, to close at 16,002.78. The benchmark index also broke the intraday record set on Friday, touching as high as 16,033.12.
Of the index’s 10 main groups, eight were in positive territory.
“A lot of it has to do with catch-up. The U.S. market has had a good run his year,” said John Kinsey, portfolio manager at Caldwell Securities, noting the record rally on Wall Street as well as support from commodity prices.
“Earnings are in focus right now. So far it’s been good, but we have a long ways to go — we’re about two weeks behind (the United States).”
Canopy Growth leaped 19.0 percent to C$15.22 on news that Corona beer maker Constellation Brands Inc has acquired a roughly 10 percent stake in the company.
The overall healthcare group saw its biggest one-day gain since June, jumping 3.7 percent.
Canadian Natural Resources was by far the heftiest driver on the index, rising 2.9 percent to C$44.63, while Crescent Point Energy Corp soared 7.5 percent to C$10.15.
U.S. crude prices touched levels not seen since late February and benchmark Brent crude held above $60 a barrel on expectations OPEC-led production cuts would be extended past march.
Precision Drilling Corp extended Friday’s gains, surging 13.8 percent to C$3.71 after the company reported a narrower-than-expected quarterly loss, while overall energy stocks rallied 1.7 percent.
The materials group, home to mining and other resource companies, added 0.9 percent, with the price of safe-haven gold rising ahead of a busy week in central bank news.
Goldcorp Inc advanced 2.0 percent to C$17.15.
Ivanhoe Mines Ltd rocketed 12.1 percent to C$4.74. The company said it reached an agreement to rebuild a railway spur line to connect the Kipushi Mine with the Democratic Republic of Congo national railway.
Element Fleet Management Corp was up a hefty 9.2 percent to end at C$10.32, while overall financial services remain unchanged.
On the downside, consumer staples retreated 0.5 percent, while industrials gave back 0.4 percent.
Advancing issues outnumbered declining ones on the TSX by 158 to 87, for a 1.82-to-1 ratio on the upside.
Ten stocks posted new 52-week highs on the index, while two posted new lows.
Reporting by Solarina Ho; Editing by Sandra Maler