Canadian shares rebounded, snapping a two-day halt, as key sectors like financials, energy, and materials saw robust gains. The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.9 percent to 14,434.67 at 12:24 p.m. in Toronto. More than three shares advanced for every issue that declined as six out of ten share groups were in the positive territory.
The materials sub-index, which includes mining shares, jumped 3.2 percent as bullion extended a recovery from recent lows. Goldcorp (TSE:G), Canada’s largest gold miner by market value, added 5.6 percent to C$18.63. Barrick Gold (TSE:ABX), the second-largest, surged 6.8 percent to C$9.87.
Spot gold was up 0.4 percent at $1,096.83 an ounce, while U.S. gold futures for December delivery were up $2.50 an ounce at $1,096.60.
The energy sector, the main index's second most heavily weighted group, rose 1.2 percent, as oil futures posted gains, putting worries aside. Suncor Energy (TSE:SU), Canada's largest oil sands producer, gained 0.4 percent to C$37.49. Enbridge (TSE:ENB), Canada's largest pipeline company, added 0.7 percent to C$56.26.
Crude futures for September delivery were up 1.7 percent at $44.60 a barrel. September Brent crude rose 2.6 percent to $49.86 a barrel.
Financials, the index's most heavily weighted sector, added 1.2 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, strengthened 1.3 percent to C$77.29. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, inched up 1.3 percent to C$53.10.
Northern Property Real Estate Investment Trust (TSE:NPR.UN) declined 7.3 percent to $21.36 after saying it plans to buy True North Apartment Real Estate Investment Trust (TSE:TN.UN) in exchange for trust units that value True North units at about C$9 each, a 16.4 percent premium to Friday’s closing price.
Telus (TSE:T) drops 1.1 percent to C$44.08 after saying its former longtime president and chief executive, Darren Entwistle, would return to the helm, effective immediately, to succeed Joe Natale, who has stepped down.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) added 0.4 percent to 579.16 at 12:10 p.m. in Toronto.
In economic news, Canadian consumer confidence dropped for a sixth week as pessimism about the nation’s economic outlook deepens, weekly polling by Nanos Research Group show. The Bloomberg Nanos Canadian Confidence Index fell to 52, the lowest since April 2013, from 52.3.
In the U.S. market, stocks were moving sharply higher, sparked by a Warren Buffett-backed merger, comments from a Federal Reserve official that suggest a September interest-rate hike may not be a done deal.