February 16, 2016 / 10:00 PM / in 2 years

CANADA STOCKS-TSX rises as financial stocks extend recovery

(Adds portfolio manager comments, details on ECB, Brookfield Asset Management; updates prices)

* TSX ends up 173.74 points, or 1.4 percent, at 12,554.98

* Nine of TSX’s 10 main groups rise

By Fergal Smith

TORONTO, Feb 16 (Reuters) - Canada’s main stock index rose on Tuesday to a one-week high as financials gained for a second straight session, while dashed hopes of an oil supply cut restrained gains for energy stocks and gold miners dragged.

The index extended a recovery from a three-week low on Thursday as concern about global financial stocks lessened. Canada’s stock market was closed on Monday for a public holiday.

Financials have taken confidence from comments by European Central Bank President Mario Draghi, while there is a sense that oil prices may be stabilizing, said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates.

“This is still very much a momentum market worldwide,” he said.

Draghi said on Monday that the ECB is ready to ease policy further in March.

The most influential movers on the index were Royal Bank of Canada, which rose 2.1 percent to C$69.41, and Toronto-Dominion Bank, which advanced 2.1 percent to C$51.88.

Brookfield Asset Management Inc rose 3.7 percent to C$41.25. Australian ports and rail giant Asciano Ltd formally dumped an A$8.9 billion ($6.4 billion) buyout from the company after it failed to match a higher offer from a local rival.

Element Financial Corp rose 6.3 percent to C$13.28 a share after it said it will split its fleet management business and its vendor and commercial financing business, creating two publicly traded companies.

The overall financial services group rose 2.1 percent.

Restaurant Brands International Inc, the owner of Burger King and the Tim Hortons coffee and doughnut chain, jumped 5.9 percent to C$46.91 after its earnings beat expectations.

Energy stocks advanced 1 percent, restrained by a pullback in crude oil prices after Russia and Saudi Arabia dashed expectations of an outright supply cut.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 173.74 points, or 1.4 percent, at 12,554.98. It touched its highest level since Feb. 8 at 12,561.31.

Nine of the index’s 10 main groups ended higher.

Nonetheless, “there is still a lot of concern about global growth,” said Kumar. “I don’t think the corrective phase in the market is over yet.”

The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.3 percent.

Barrick Gold Corp declined 5.0 percent to C$16.11, while Goldcorp Inc was down 5.3 percent at C$20.55.

Gold fell on dampened safe-haven demand, taking it further below last week’s one-year high. (Additional reporting by Alastair Sharp; Editing by Paul Simao and Matthew Lewis)

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