TORONTO (Reuters) - Canada’s main stock index rose on Monday to a three-month high as mining and energy stocks gained on the back of higher oil and gold prices, while industrial and financial sector stocks also rallied.
The index has rebounded 16 percent since hitting an almost 3-1/2 year low in January, helped by a recovery in commodity prices and stabilization in financial markets.
“There’s a certain amount of short-covering that’s going on that’s helping to drive the market,” said Michael Sprung, president at Sprung & Co. Investment Counsel.
The energy group climbed 2.3 percent, while the materials sector, which includes precious and base metals miners and fertilizer companies, added 2.2 percent.
Global oil markets jumped more than 5 percent after Ecuador said it was holding a meeting of Latin American crude producers as OPEC sought a higher anchor price for oil. [O/R]
Goldcorp Inc (G.TO) advanced 4.9 percent to C$21.16, while gold hovered just below last week’s 13-month high.
The shares of Cameco Corp (CCO.TO) rose 0.6 percent to C$16.76. The company is slowly expanding the world’s biggest uranium mine, betting utilities that are currently well-supplied will need the radioactive metal in coming years.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 171.1 points, or 1.29 percent, to 13,383.60. It touched its highest since Dec. 3 at 13,447.68.
The index recorded its eighth straight gain and its fifth straight session hitting a record for 2016.
All of its 10 main groups ended higher, while advancing issues outnumbered declining ones by 176 to 58, for a 3.03-to-1 ratio on the upside.
Valeant Pharmaceuticals International Inc VRX.TO jumped 6.8 percent to C$87.15 after announcing a date for its delayed fourth-quarter results.
Industrials rallied 2.3 percent, while financial sector stocks were up 0.9 percent.
“People are still looking for places where they can find yield and you can find fairly good yield in the financial sector,” said Sprung.
Reporting by Alastair Sharp; Editing by Jeffrey Benkoe, Grant McCool