May 5, 2016 / 2:43 PM / 2 years ago

CANADA STOCKS-TSX rises, led by resource stocks as oil rallies

(Adds details throughout on stocks, sectors and wildfire, updates prices)

* TSX up 85.04 points, or 0.62 percent, to 13,717.04

* Seven of the TSX’s 10 main groups were higher

TORONTO, May 5 (Reuters) - Canada’s main stock index rose on Thursday, snapping a three-day losing streak as higher oil prices supported energy stocks, while gold stocks also rallied.

Gains for the index come one day after it fell to a two-week low of 13,570.02 as a wildfire cut production in Canada’s oil sands region. Austrian consultancy JBC Energy estimated that some 500,000 barrels per day of capacity was offline.

The wildfire has grown to five times its initial size. However, the weather forecast has called for lower temperatures and possible rain, offering hope that controlling the blaze could become easier.

The most influential movers on the index included Canadian Natural Resources, which rose 2.2 percent to C$36.74, and Cenovus Energy, which advanced 4.5 percent to C$19.72. The overall energy group was up 2.5 percent.

U.S. crude prices rose 3.6 percent to $45.34 a barrel as Canada’s production cuts and escalating tensions in Libya sparked concern among investors over a near-term supply shortage.

Barrick Gold Corp rallied 3.2 percent to C$23.20, while Goldcorp Inc was up 2.15 percent at C$24.26.

Gold rebounded from three straight days of losses as the dollar pared gains after a larger-than-expected rise in weekly jobless claims in the United States.

Magna International Inc rose 2.4 percent to C$52.40. The auto parts maker reported a higher-than-expected first-quarter profit and raised its full-year sales forecast for a second time, boosted by strong vehicle sales in North America and Europe.

At 10:28 a.m. EDT (1428 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 85.04 points, or 0.62 percent, to 13,717.04. Seven of the index’s 10 main groups were higher.

Shares of Manulife Financial Corp rose nearly 2 percent to C$18.43. Canada’s biggest life insurer reported a 45 percent jump in first-quarter earnings, boosted by strong insurance sales in Asia and gains from interest rate movements.

National Bank of Canada estimated that it would set aside C$250 million before taxes in the quarter ended April to cover bad loans to the oil and gas industry. Its shares fell 1.3 percent to C$41.99.

The overall financials group was little changed. (Reporting by Fergal Smith; Editing by James Dalgleish)

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