Toronto stocks ended a losing week with a convincing gain on Friday as global tensions and worries about the vulnerability of oil supply lines triggered a rally among influential energy shares.
The Toronto Stock Exchange S&P/TSX composite index rose 110.81 points, or 1.07 percent, to 10,502.11. But, for the week, the key index fell 1.69 percent.
Toronto's first triple-digit gain in almost three weeks ended a skid of five straight losing sessions during which energy stocks tumbled with crude prices amid worries that sky-high oil prices were firing inflation and dampening company earnings.
"The big dips in energy stocks have been met by buying at certain levels and that's exactly what happened today," said Elvis Picardo, chief market strategist at Global Securities Corp.
"I think investors are still willing to give this group the benefit of the doubt and they stepped in a big way today."
The energy sector led the market higher with a 2.3 percent, gain, followed by a 1.7 percent climb by the information technology group. Eight of the TSX's 10 main subindexes ended higher.
Oil prices rebounded back above $65 a barrel on renewed market jitters after a halt in Ecuador's oil exports combined with news that two missiles targeted, but missed, US ships in Jordan's port of Aqaba.
Shares of Canadian Natural Resources, the biggest contributor to the market's gain, rose C$1.98, or 3.8 percent, to C$53.48, while Suncor Energy jumped C$1.82, or 2.8 percent, to C$67.16.
The technology sector raced to its highest close in almost two months as investors saw attractive prices in the group after a choppy week.
Research In Motion led the tech charge as its shares rose C$3.19, or 3.7 percent, to C$85.59, while Nortel Networks Corp gained 7 Canadian cents, or 1.8 percent, to C$3.87.
Other than the start of earnings period for the big banks next week, some experts are anticipating a quiet, but negative, week on the TSX as investors may be tempted to take profits from energy and commodities.
"We've seen quite a bit of volatility on the TSX this week and I think that's going to be the trend next week as well," said Picardo.
"Investors are getting a little skittish about the performance of the best-performing groups so far and there might be a tendency again to take profits as we go along."
Market momentum was comfortably positive as 833 issues advanced and 567 issued declined on a light volume of 175 million shares valued at C$3 billion.
The blue chip S&P/TSX 60 index rose 6.68 points, or 1.14 percent, to 590.33.
US stocks ended flat despite a multimillion-dollar jury verdict against Merck & Co over its Vioxx painkiller, which sent the drugmaker's shares down 7.7 percent.
The Dow Jones industrial average eked out a gain of 4.30 points, or 0.04 percent, to 10,559.23, while the Nasdaq composite index finished 0.52 points, or 0.02 percent, lower at 2,135.56.
Comments
Comments are closed.