Canada's main stock index rose on Monday to its highest in nearly six years after higher commodity prices helped drive up shares in the energy and mining sectors. Oil prices jumped more than 1 percent, while the prices of bullion and silver also traded in positive territory.
The Toronto market was up for a seventh straight session and has gained more than 9 percent this year, but some investors are starting to get concerned about stock prices outpacing fundamentals. "The valuations are extended. We're at a point where I would be a bit nervous on the TSX side of things," said Sadiq Adatia, chief investment officer at Sun Life Global Investments, who expects a market correction at some point.
"In Canada, you do want to be more value-oriented," he added. "As we do have a pullback, you want to be playing that quite defensively." Adatia is more bullish about the US stock market based on the strength of the world's biggest economy. "The US still has room to go higher. I don't think it's over-valued."
The Toronto Stock Exchange's S&P/TSX composite index was up 35.91 points, or 0.24 percent, at 14,874.81, its highest since June 19, 2008. Nine of the 10 main sectors on the index were higher. Shares of energy producers climbed 0.3 percent. Suncor Energy Inc was up 0.7 percent at C$43.15, and Canadian Natural Resources Ltd advanced 0.2 percent to C$46.10.
The materials sector, which includes mining stocks, gained 0.3 percent. Barrick Gold Corp added 0.6 percent to C$17.62, and Agrium Inc rose 0.5 percent to C$99.69. In corporate news, Ritchie Bros Auctioneers Inc jumped 6 percent, to C$26.75, after Cantor Fitzgerald and raised its rating on the stock.