September 8, 2015 / 11:42 AM / 4 years ago

TSX jumps as commodity prices drive up resource shares

TORONTO (Reuters) - Canada’s main stock index ended higher on Tuesday as gains in copper and oil prices helped boost shares of mining and energy companies.

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

Copper prices strengthened as weak Chinese data prompted bets that Beijing would move to stimulate the world’s second-largest economy.

The rebound in the benchmark Canadian index follows a 2.8 percent decline in the previous week, triggered by concerns over China’s economic growth.

The materials group, which includes miners, climbed 1.2 percent, with First Quantum Minerals Ltd (FM.TO) surging 22.9 percent to C$7.62 and Teck Resources Ltd TCKb.TO advancing 5.9 percent to C$8.64.

Copper added 3.8 percent after the data, which was mostly negative but showed copper imports holding up.

The metal has rebounded about 9 percent since touching a six-year low in late August, largely on fears of a hard landing in China.

Still, investors expressed skepticism on the sustainability of the bounce.

“It’s getting to a point where these big swings are getting normal,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.

“The markets have been unusually volatile of late,” he added. “It remains to be seen how much these gains are sustainable.”

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 152.36 points, or 1.13 percent, at 13,630.67. Nine of its 10 main groups were higher.

The most influential movers on the index included several of its biggest banks, with Royal Bank of Canada (RY.TO) rising 2.2 percent to C$72.41 and Bank of Nova Scotia (BNS.TO) adding 1.7 percent to C$59.50.

Manulife Financial Corp (MFC.TO) rose 0.9 percent to C$20.41 and Brookfield Asset Management (BAMa.TO) advanced 1.3 percent to C$41.19. The overall financials group, which makes up more than a third of the overall index weight, climbed 1.4 percent.

Brent crude added 3.6 percent to $49.36. Canadian Natural Resources Ltd (CNQ.TO) rose 1.6 percent to C$27.88.

Additional reporting by John Tilak; Editing by Matthew Lewis

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