Canada's main stock index rose on Tuesday, snapping its four-day losing streak as energy stocks rose on higher oil prices, while Organigram Holdings' upbeat earnings further bolstered sentiment.
At 09:34 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 31.69 points, or 0.15%, at 21,452.46.
The energy sector jumped 2.4% after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of expectations.
"Everyone's been worried for the last few days that Biden and Washington are going to release the SPR (Strategic Petroleum Reserves) and now with that news out and oil in positive, it's interesting to see how everyone realizes it's not that big a deal," said Gregory Taylor, portfolio manager at Purpose Investments.
Toronto stocks flat as miners offset banking gains
The benchmark equity index which scaled record highs early this month lost its steam last week, weighed down by weakness in commodity prices and the resurgence of COVID-19 cases in Europe threatening to slow down the global economic recovery.
Further aiding sentiment was Organigram Holdings, which rose 10% and was the largest percentage gainer on the index after the pot producer posted better-than-expected fourth-quarter revenue and forecast higher revenue for the subsequent quarter.
Financials, which account for about 30% of the Toronto market's value, extended gains for a second session, rising 0.3%, tracking US banks stocks as investors priced in an early policy tightening by the Federal Reserve.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.2% as gold futures fell 0.9% to $1,790 an ounce..
Highlights
The TSX posted no new 52-week high and two new lows.
Across Canadian issues, there were six new 52-week highs and 42 new lows, with total volume of 28.64 million shares.
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