TSX rises to a five-month high as oil losses pared

TORONTO (Reuters) - Canada’s main stock index rose to a five-month high on Monday as energy stocks rallied after oil pared losses, while mining and financial sector stocks also advanced.

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014. REUTERS/Mark Blinch

The index has rebounded 19 percent since hitting a near 3-1/2-year low in January.

U.S. corporate earnings have not been as bad as feared, while recent improvement in economic data has left investors more optimistic about the earnings outlook, said Kevin Headland, director of the portfolio advisory group at Manulife Asset Management.

“We think the back half of the year is going to be much better, at least in terms of an earnings perspective,” he added.

Oil prices slid after major oil producers failed to reach agreement on a plan to freeze output at a meeting in Doha, but a Kuwaiti oil industry strike helped the market to settle way above the day’s lows.

U.S. crude CLc1 prices settled at $39.78 a barrel, down 1.44 percent.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 82.62 points, or 0.61 percent, at 13,719.82. It touched its highest since Nov. 4 at 13,730.59.

The most influential movers in the index included Canadian Natural Resources Ltd CNQ.TO, which rose 2.4 percent to C$37.57, and Enbridge Inc ENB.TO, which advanced 1.9 percent to C$52.97.

Suncor Energy SU.TO, Canada's largest oil and gas company, said it would disclose more details on its plans to compete in a lower-carbon future and on its lobbying activities. Its shares rose 0.8 percent to C$36.22.

The overall energy group rose 1.2 percent.

The materials group, which includes precious and base metals miners and fertilizer companies, added 1.1 percent.

Teck Resources Ltd TCKb.TO rose 12.8 percent to C$12.30, while Potash Corp POT.TO was up 1.7 percent at C$21.44.

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

The financials group edged 0.2 percent higher, including a 1.3 percent rise in the shares of Manulife Financial Corp MFC.TO to C$18.46.

Among the biggest drags on the index were CI Financial Corp CIX.TO, which declined 4.7 percent to C$27.68, and Detour Gold Corp DGC.TO, which fell 3.9 percent to C$24.78.

Additional reporting by Alastair Sharp; Editing by Nick Zieminski and Cynthia Osterman