Toronto stocks surged to their highest level in three weeks on Friday as investors pounced on signs of a robust Canadian economy and got support from rebounding oil issues.
The Toronto Stock Exchange's key composite index gained 89.93 points, or 1.02 percent, to 8,870.97. For the week, the index gained 1 percent.
"We had a very, very strong GDP report," said John Stroud, chief investment strategist at Assante Asset Management.
"You look around the world, you'd be hard-pressed to find an economy that is running better than Canada's right now."
Canada's gross domestic product grew by a faster than expected 0.5 percent in August from July on stronger performance in both goods and services, Statistics Canada said on Friday
Nine of the exchange's 10 main subindexes finished higher on volume of 219 million shares worth C$3.67 billion. Momentum was positive with 752 issues advancing and 554 declining.
The heavily-weighted financial sector gained 1.34 percent, plumped up by positive earnings reports.
"The market has certainly demonstrated that right now people are very sensitive to whether earnings are coming in in line with expectations or not," said Michael Sprung, vice-president and portfolio manager with YMG Capital Management.
Sun Life Financial gained 96 Canadian cents, or 2.63 percent, to C$37.46, while Great West Lifeco gained 66 Canadian cents, or 2.67 percent, to C$25.41, a day after both insurers reported rises in third-quarter profits.
Manulife Financial gained 93 Canadian cents, or 1.66 percent, to C$56.88, while Canadian Imperial Bank of Commerce rose C$1.08, or 1.48 percent, to C$73.90. The market found bargains in energy stocks that had slumped on lower oil prices earlier this week, moving the subindex up 1.73 percent. Oil prices bounced back on Friday, and settled up 84 cents at $51.76 a barrel.
Precision Drilling Corp, Canada's biggest oil field services company, gained C$2.03, or 2.77 percent, to C$75.40.
EnCana Corp, which earlier on Friday announced it was selling its British assets to Nexen Inc for $2.1 billion, gained C$1.90, or 3.25 percent, to C$60.40. Nexen lost C$1.26, or 2.38 percent, to C$51.79.
Gold stocks also gained 2.02 percent as the price for the precious metal got a boost from a weak US dollar.
Barrick Gold, the world's third-largest gold miner, gained 50 Canadian cents, or 1.85 percent, to C$27.60. Placer Dome gained 58 Canadian cents, or 2.27 percent, to C$26.18.
The blue chip S&P TSX 60 index gained 5.37 points or 1.09 percent to 496.37.
In New York, the Dow Jones industrial average gained 22.93 points, or 0.23 percent, to 10,027.47. The Nasdaq composite index lost 0.75 points, or 0.04 percent, to 1,974.99.
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