TORONTO (Reuters) - Canada’s main stock index advanced on Friday, recording its fifth straight weekly gain as natural resource shares jumped on the back of surging commodity prices, while bullish U.S. economic data provided further support.
U.S. retailers reported stronger-than-expected sales for October, a positive sign for the world’s biggest economy.
Energy shares received help from a rise in oil prices, which have been under pressure since June, while shares of gold miners benefited from a 2.3 percent jump in the price of bullion.
“It’s not a bad idea to go fishing for some quality assets that have been beaten up a little,” said Adrian Mastracci, portfolio manager at KCM Wealth Management.
“The sectors that jump out are the commodity producers, gold and oil, just because they’ve fallen from their highs,” he added. “For those investors who want to have a sprinkle of oil and a sprinkle of gold, this is probably not a bad time to do it.”
The Toronto Stock Exchange’s S&P/TSX composite index closed 64.33 points, or 0.44 percent, higher at 14,843.10. Seven of the 10 main sectors on the index rose.
Among oil and gas shares, Talisman Energy Inc rose 1.4 percent to C$6.41 and Encana Corp climbed 2.4 percent to C$20.21.
The gold-mining sector shot up 5.6 percent on the higher bullion price. Goldcorp Inc added 5.2 percent to C$23.04, and Barrick Gold Corp gained 5.5 percent to C$13.83.
Editing by Nick Zieminski; and Peter Galloway