TORONTO (Reuters) - Canada’s main stock index gained for a third straight session on Tuesday, with heavily weighted resource stocks and banks carrying most of the gains on the back of higher commodity prices.
Seven of the Toronto Stock Exchange’s S&P/TSX composite index’s .GSPTSE 10 main sectors slipped, but the index ended up 95.06 points, or 0.70 percent, at 13,647.26.
The rising financials, energy and materials sectors account for almost two-thirds of the index’s weight.
The energy group gained 3.8 percent as crude oil prices broke through the top of a month-long range. Materials, which includes miners, rose 3.3 percent.
“Oil is heading higher, the real question is when. And some guys are trying to say maybe it’s a bit sooner than later,” said Manash Goswami, a portfolio manager at First Asset Investment Management.
Bombardier Inc BBDb.TO stock surged 15 percent in the last half-hour of trading to close at C$1.77 after Reuters reported the planemaker has approached Airbus about selling a majority stake in its CSeries jet in order to shore up its depleted balance sheet.
The most influential mover on the index was Canadian Natural Resources CNQ.TO, which rose 4.8 percent to C$29.55. Crescent Point Energy CPG.TO surged 7.4 percent to C$18.91 and Encana Corp ECA.TO jumped 7 percent to C$10.60.
U.S. crude CLc1 prices jumped 5.6 percent to $48.86 a barrel, while Brent LCOc1 added 5.8 percent to $52.08.[O/R]
First Quantum Minerals FM.TO shares surged 21 percent to C$7.49 in heavy volume after the miner said it would cut net debt by C$1 billion and lowered its copper production forecast.
It also revised its deal with Franco-Nevada Corp FNV.TO for its flagship copper-gold Cobre Panama project in Central America.
Gold prices XAU= rose to a two-week high as the U.S. dollar softened on the back of disappointing economic data that could push the Federal Reserve’s next interest rate hike further away. [GOL/]
First Asset’s Goswami said recent jitters about slowing growth in China and in other emerging markets may have been overdone, making cyclical stocks attractive as the economy improves.
“Things aren’t that bad. It’s not like there’s a global crisis that makes me want to hide underneath my desk,” he said.
Additional reporting by Solarina Ho; Editing by Lisa Von Ahn and James Dalgleish