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CANADA STOCKS-TSX rises as energy stocks extend gains on oil rally
December 1, 2016 / 3:31 PM / a year ago

CANADA STOCKS-TSX rises as energy stocks extend gains on oil rally

(Adds analyst comment, details on specific stocks, updates prices)

* TSX up 41.77 points, or 0.28 percent, at 15,124.62

* Half the TSX’s 10 main groups gain; energy up 3 pct

TORONTO, Dec 1 (Reuters) - Canada’s main stock index rose on Thursday as energy shares made further gains with oil prices after OPEC reached a deal to cut output, while investors reacted to divergent earnings reports from two major banks.

Canadian Imperial Bank of Commerce rose 1.9 percent to C$107.95 after the country’s fifth-biggest bank reported a better-than-expected quarterly profit, driven by strong performance in its capital markets business.

Meanwhile, the country’s No. 2 lender Toronto-Dominion Bank fell 1 percent to C$62.95 after reporting earnings that were in line with expectations.

“In light of earnings produced by some of TD’s peers, we would expect relative underperformance on its valuation today, with TD’s now noticeably lagging capital ratio likely adding to the pressure,” Barclays analyst John Aiken wrote in a note.

The heavyweight financials group gained 0.2 percent overall.

The energy group climbed 3 percent, adding to a nearly 8 percent jump on Wednesday after OPEC members and Russia agreed to limit their oil output in a bid to prop up prices.

Suncor Energy Inc added 2.2 percent to C$43.70 and Canadian Natural Resources Ltd rose 2.7 percent to C$46.53.

At 10:07 a.m. EDT (1507 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 41.77 points, or 0.28 percent, at 15,124.62. It hit a near 18-month intraday high on Wednesday.

Half of the index’s 10 main groups were in positive territory, with advancers outnumbering decliners by a 1.2-to-1 ratio.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1 percent as gold prices hit a 10-month low.

U.S. crude prices were up 2.9 percent to $50.87 a barrel, while Brent added 3.1 percent to $53.44.

Gold futures fell 0.7 percent to $1,162.3 an ounce and copper prices lost 0.5 percent to $5,796.5 a tonne.

The pace of growth in Canadian manufacturing picked up modestly in November as a measure of new orders rose to its highest in seven months, data showed, an encouraging sign for a sector that has struggled to make strong gains this year.

Reporting by Alastair Sharp; Editing by Bernadette Baum

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