Canadian shares rose more than 1% on Monday as Canadian Oil Sands (TSE:COS) surged on Suncor Energy’s (TSE:SU) hostile offer.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 1.7% to 13,560.34 at 1:32 p.m. in Toronto. Eleven shares advanced for every issue that declined as nine out of ten share groups were in positive territory.
Suncor Energy (TSE:SU) sank 2.4% to C$34.54. Canada's largest pipeline company launched a hostile bid for Canadian Oil Sands (TSE:COS) as the slump in oil prices encourages consolidation in Canada's oil sands industry. Canadian Oil Sands surged 48% to C$9.18.
The energy sector, the main index's second most heavily weighted group, advanced 4.2% as oil rose after Russia said it was prepared to discuss the market with other producers.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November rose 2.8% to $49.48 a barrel, having risen as high as $49.87. U.S. crude was up 2.2% at $46.56 a barrel after touching a session peak of $46.94
The materials sub-index, which includes mining shares, advanced 3.1% as gold rose on a weaker dollar.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, added 2% to C$17.45. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, added 3.6% to C$8.98.
Potash Corp. of Saskatchewan (TSE:POT) added 1.7% to C$27.43. The fertilizer company withdrew its 7.85bn-euro ($8.8bn) proposal to acquire Germany’s K+S AG amid a decline in global commodity and equity markets.
Spot gold was up 0.2% at $1,139.81 an ounce.
Financials, the index's most heavily weighted sector, rose 2.1%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, inched up 1.5% to C$73.05.
Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, jumped 1.1% to C$52.76.
In the U.S. Wall Street opened higher on Monday, after downbeat U.S. jobs data on Friday hardened views that the Federal Reserve will not hike interest rates this year.
The Toronto stock exchange has lost 7.3% so far this year.