Toronto's main stock index hit a three-week high on Monday, influenced by a turnaround in energy prices and buoyed by news that al Qaeda leader Osama bin Laden had been killed. The heavily weighted energy sector gained more than 1 percent, led by Suncor Energy, which rose 1.8 percent to C$44.42, while Talisman Energy rose 1.8 percent to C$23.25.
US and Brent crude oil futures turned positive after falling sharply overnight on the news of bin Laden's death in Pakistan, as the risk premium related to geopolitical unrest in the Middle East and North Africa remained intact, analysts said. "Oil turned around. The market is now worried that we may see reprisals for the US killing of bin Laden and thus there's more nervousness in the oil market," said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.
"A lot of sectors are up, and I think the market continues to be focused on good news," she added, citing a wave of proposed deals. The main TSX index rose more than 1 percent to as high as 14,089.10, its strongest level since April 11, riding the rebound in oil, before paring gains.
At 11:45 am (1545 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 78.64 points, or 0.56 percent, at 14,023.43. Eight of the index's 10 sectors were higher. Financials rose 1.3 percent, led by a 1.8 percent gain by Bank of Nova Scotia, and a 3.2 percent rise by Manulife Financial.
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