TORONTO (Reuters) - Canada’s main stock index rose on Tuesday with lift from a move higher in Royal Bank of Canada (RY.TO) after it avoided the need to set aside additional capital, and by solid gains in energy sector shares as oil prices jumped on supply disruptions.
“I believe you’re seeing some portfolio managers tip-toe back into some of the beaten-up stocks in this sector that represent good, solid, long-term value,” said Rick Hutcheon, president and chief operating officer at RKH Investments.
Pipeline operator TransCanada Corp (TRP.TO) added 0.5 percent to C$44.44 after asking the U.S. government to suspend a review of its controversial Keystone XL project.
The most influential gainer was Royal Bank of Canada (RY.TO), which gained 1.5 percent to C$75.75, compared to a 0.3 percent gain for the overall financials group.
The country’s largest bank avoided a widely expected designation from the Financial Stability Board as a global, systemically important bank, which would have forced it to have a higher capital position.
“The cheer was heard all the way from Bay Street to St. Clair where I am,” said Barry Schwartz, portfolio manager at Baskin Financial Services.
“It’s the regulators saying you’re OK, you’re not going to be covered under these new regulations that will force you to have more capital that will constrain your ability to grow.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 87.30 points, or 0.64 percent, at 13,710.31.
Nine of the index’s 10 main groups were in positive territory, with advancers outnumbering decliners at a 1.6-to-1 ratio.
U.S. crude CLc1 prices settled up 3.8 percent to $47.90 a barrel, while Brent crude LCOc1 added 3.3 percent to $50.42, supported by a strike by oil workers in Brazil and force majeure for Libyan crude loadings. [O/R]
Reporting by Alastair Sharp and Fergal Smith; Editing by Meredith Mazzilli and David Gregorio