TORONTO (Reuters) - Canada’s main stock index rose more than one percent on Wednesday as energy stocks soared on a deal by major oil producers to limit output, while the financials and materials groups also gained ground.
The OPEC news got investors excited as it will tighten up supply in the oil market, said Manash Goswami, portfolio manager at First Asset Investment Management Inc.
U.S. crude CLc1 prices settled up $2.38 at $47.05 a barrel after sources told Reuters that the Organization of the Petroleum Exporting Countries struck a deal to limit crude output at its policy meeting in November. [O/R]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 173.39 points, or 1.19 percent, at 14,731.43.
It touched its highest intraday since Friday at 14,740.07.
The financials group climbed 0.7 percent, including gains for the country’s heavyweight bank stocks.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.4 percent.
BlackBerry Ltd (BB.TO) said it will outsource the development and design of its flagship smartphone. Its shares rose 4.6 percent to C$10.89.
Bombardier Inc (BBDb.TO) gained 1.9 percent to C$1.62. The company is starting to look at its options for a new aerospace program now that its CSeries commercial plane is complete, but no decisions have been made, its chief executive said.
Just two of the index’s 10 main groups ended lower.
Convenience store company Alimentation Couche Tard Inc (ATDb.TO) fell 1.8 percent to C$63.66, while the overall consumer staples group dipped 0.6 percent.
Malaysia’s Petronas said it would review a proposed C$36 billion ($27.25 billion) liquefied natural gas (LNG) project in western Canada after Ottawa approved the project with conditions to limit the environmental impact.
Reporting by Fergal Smith; Editing by Meredith Mazzilli and Sandra Maler