TSX rises as commodity price gains boost resource stocks

Canada’s main stock index gained on Tuesday on the back of higher commodity prices that boosted its natural resources companies, while banks and insurers also added support as bond yields rose.

The energy group climbed 2.1 percent as oil prices jumped in the wake of a Saudi vow to reduce exports, while the materials group, which includes precious and base metals miners and fertilizer companies, added 1.2 percent.

The two sectors combine to account for more than half of the index’s weight, and have dragged it down so far this year.

At 10:42 a.m. ET (1442 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 67.69 points, or 0.45 percent, at 15,196.38, with three gainers for every two declining stocks.

With copper trading at its highest in five months, investors were buying up shares of some of Canada’s biggest miners of the metal, with First Quantum Minerals Ltd up 6 percent to C$13.94, Lundin Mining Corp adding 6.4 percent to C$8.51, and Hudbay Minerals Inc gaining 7.7 percent to C$9.34.

The most influential movers on the index also included Suncor Energy Inc, which rose 1.1 percent to C$38.79, and Canadian Natural Resources, up 1.4 percent at C$37.83.

The financials group gained 0.3 percent, with insurers leading the group as bond yields gained, which reduces the value of their liabilities.

Manulife Financial Corp added 2.0 percent to C$25.97 and Sun Life Financial Inc gained 1.2 percent to C$47.91.

Westshore Terminals Investment Corp jumped 11.8 percent to C$23.58. Royal Bank of Canada raised its view on the coal shipper’s stock to “outperform” and increased its target price to C$30 from C$24.