Canada's main stock index rose to its highest level in almost five months on Friday as robust oil prices helped boost the energy sector, offsetting a decline in TransCanada Corp after the pipeline company reported quarterly results. Positive signals from Germany, where economic growth was much stronger than expected in the fourth quarter, also supported the market.
TransCanada reported a higher-than-expected quarterly profit, driven mainly by increased earnings from its Canadian operations. But the stock shed 2.2 percent. Both US and Brent crude oil prices were up around 3 percent, helping the energy sector rebound from recent lows. The benchmark TSX rose for a fifth straight session and was on track to record a weekly gain.
"It's quite the recovery, considering what we've gone through," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver. "But it's going to be choppy. We're getting to a point where investors are getting too complacent," he added. "There's a degree of downside risk that's being overlooked now." The Toronto Stock Exchange's S&P/TSX composite index closed up 36.29 points, or 0.24 percent, at 15,264.81. Six of the 10 main sectors on the index were higher.
Financials, the index's most heavily weighted sector, strengthened. Bank of Nova Scotia was up 1 percent to C$67.20, and Royal Bank of Canada rose 0.2 percent to C$77.54. Among shares of energy producers, Canadian Natural Resources Ltd was up 1.2 percent at C$39.40 and Suncor Energy Inc advanced 0.8 percent to C$39.40.
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