Energy boosts TSX to 10-month high
TORONTO (Bloomberg) - Canadian stocks rose, pushing the Standard & Poor's/TSX Composite Index to a 10-month high, as energy and material producers joined yesterday's rally in US shares and commodity prices.
Canadian Natural Resources Ltd. and Suncor Energy Inc. led the advance in energy shares, gaining more than 4.5 percent. Miners Barrick Gold Corp., Goldcorp Inc. and Teck Resources Ltd. advanced as gold and copper prices climbed.
The S&P/TSX added 230.95 points, or 2.1 percent, to 11,018.1 as of 4.10 p.m. in Toronto, the highest level since Oct. 1. With the Canadian market closed for a holiday yesterday, the S&P 500 gained 1.5 percent, surpassing 1,000 for the first time since November. The Canadian stock benchmark is up 23 percent this year, twice the S&P 500's advance.
"We had some catch-up based on the various bits of bullish news in New York," said Michael Smedley, who helps manage about $800 million at Morgan Meighen & Associates in Toronto. "Plus, we have raging commodity prices and various good news in commodity stocks."
The Reuters/Jefferies CRB Index gained 0.3 percent to the highest level since November 5, after jumping 3.4 percent yesterday on reports that US construction spending topped forecasts and manufacturing in China expanded.
A gauge of energy producers in the S&P/TSX rallied for a third day, advancing 2.9 percent to the highest level since June 15. Canadian Natural, the country's second-largest natural gas producer, advanced 5.1 percent to C$68.06. Suncor, the world's second-biggest oil-sands producer, rallied 4.6 percent to C$36.44.