Canadian shares rose on Tuesday, buoyed by strong gains among energy producers as oil prices rallied towards $50 per barrel.
The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) advanced 0.7% to 13,723.35 at 12 p.m. in Toronto.
Two shares advanced for every issue that declined as eight out of ten share groups were in positive territory.
The energy sector, the main index's second most heavily weighted group, jumped 2.8%. Suncor Energy (TSE:SU), Canada's biggest energy company, rose 1.6% to C$39.80. Canadian Natural Resources (TSE:CNQ), the country's largest heavy-oil producer, gained 1.9% to C$31.82.
U.S. crude futures were trading at $47.34 per barrel, up $1.20 from their last settlement, after falling in the previous session on higher stockpiles.
The materials sub-index, which includes mining shares, gained 1.4% even as gold fell 1% to a four-week low on Monday.
Rubicon Minerals (TSE:RMX) tumbled 52% to C$0.275 after the company halted underground work on its Phoenix gold project and acknowledged it needs to go back to the drawing board.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, added 0.4% to C$16.77. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, inched up 0.7% to C$10.24.
First Quantum Minerals (TSE:FM) rose 2.5% to C$7.42, reversing an earlier loss. The base metal miner said workers at its Cayeli copper-zinc mine in Turkey are on strike since Oct. 30, following a failure to reach an agreement over pay.
U.S. gold futures for December delivery were down $13.40 an ounce at $1,122.50.
The financials group, which accounts for approximately 36% of the main measure, more than any other group, was little changed. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, added 1.5% to C$75.78. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, slid 0.1% to C$54.11.
In other stocks, Alimentation Couche-Tard (TSE:ATD.B) gained 4% to C$58.50 after RBC Capital Markets lifted its rating on the shares to the equivalent of a "buy".