Toronto stocks closed firmer on Friday as strong oil prices sparked a rally among energy issues, but overall weakness through the month left the key index with its first monthly loss since April.
The Toronto Stock Exchange S&P/TSX composite index, rose 14.88 points, or 0.18 percent, to 8,458.07. For the week, the key index rose 0.89 percent. The market will be closed on Monday for a civic holiday.
Despite riding a three-session win streak into the weekend, investors did not place much weight on the rally, given that it followed a string of losses that left bargains on the table.
"The market simply rebounded from recent losses and is now posting modest gains as we've started to see a little bit of bargain-hunting," said Elvis Picardo, chief market strategist at Global Securities Corp.
"Sentiment was quite battered over the previous weeks but we're definitely starting to see some buying interest after a long absence."
The energy sector rose 0.6 percent, while health-care stocks chipped in with a gain of 1.66 percent. Five of the TSX's 10 subindexes closed higher.
Concern that financial turmoil at Russia's largest oil company could cut into exports from the No. 2 supplier nation helped oil prices reach fresh highs above $43 a barrel and extended a rally among energy stocks.
Suncor Energy rose C$1.09, or 2.9 percent, to C$38.38, while Canadian Natural Resources finished up C$1.16. or 2.7 percent, at C$44.25.
Technology stocks handed back a portion of recent gains as investors did not want the sector to get too far ahead of itself until proof of spending in the industry is evident.
Telecommunications equipment provider Nortel Networks Corp dropped 15 Canadian cents, or 3 percent, to C$4.81, while graphics chip maker ATI Technologies handed back 40 Canadian cents, or 1.8 percent, to close at C$21.25.
Even though a rash of Canadian earnings lured investors back into the market, investors seem to agree it will be locked in a tight range for the rest of the summer.
"We had a good week partly because of earnings, but it certainly doesn't make a trend," said Ian Nakamoto, market strategist at Macdougall Macdougall & Mactier Inc.
"We came down to a certain support level that people thought it was reasonable to go in and buy."
Market momentum during the session was positive as 757 issues advanced and 469 declined on light volume of 138 million shares valued at C$2 billion.
The blue-chip S&P/TSX 60 index closed 0.47 points, or 0.1 percent, higher at 469.34.
US stocks barely finished above the waterline as conflicting economic reports cast doubt on the strength of the US economy.
The Dow Jones industrial average rose 10.47 points, or 0.1 percent, to 10,139.71, while the Nasdaq composite index closed 6.30 points, or 0.33 percent, higher at 1,887.36.
Comments
Comments are closed.