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TSX gains as energy stocks jump on vaccine cheer

(Reuters) - Canada’s main stock index rose on Monday, as energy stocks jumped 3% tracking oil prices, after U.S. drugmaker Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.

FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren

Moderna Inc MRNA.O became the second U.S. company in a week to report positive results from its COVID-19 vaccine trial, which raised hopes of a quicker economic recovery from a pandemic-led recession.

Adding to the upbeat mood, Canada’s factory sales increased by 1.5% in September from August on higher sales in the wood industry, as well as the chemical industry, Statistics Canada said.

Crude prices rose about 4% and boosted energy stocks .SPTTEN, with oil producer Parex Resources Inc PXT.TO, up 6.1%, leading gains.

At 9:41 a.m. ET (1441 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 60.24 points, or 0.36%, at 16,735.88.

The materials sector .GSPTTMT, which includes precious and base metals miners, lost 0.5% as gold prices fell.

Fortuna Silver Mines Inc FVI.TO fell 4.9%, the most on the TSX, after Canaccord Genuity downgraded the stock

The second biggest decliner was Endeavour Mining Corp EDV.TO, down 3.7%, after the miner agreed to buy Teranga Gold TGZ.TO in deal worth $2.4 billion.

On the TSX, 137 issues were higher, while 84 issues declined for a 1.63-to-1 ratio favouring gainers, with 29.95 million shares traded.

H&R Real Estate Investment Trust HR_u.TO rose 5.7% after TD Securities raised its price target on the real estate investment trust's stock.

The most heavily traded shares by volume were Manulife Financial Corp MFC.TO, Air Canada AC.TO and Suncor Energy Inc SU.TO.

The TSX posted four new 52-week highs and no new low.

Across all Canadian issues there were 52 new 52-week highs and three new lows, with total volume of 53.36 million shares.

Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel

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