TSX gains as material stocks rise on firmer gold prices

Canada's main stock index rose on Monday, lifted by material stocks that gained on rise in gold prices as lower US Treasury yields and inflation worries made bullion more attractive.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.9% as gold futures rose 0.5% to $1,847.2 an ounce.

At 09:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 27.44 points, or 0.14%, at 19,394.13.

Canadian housing starts fell 19.8% in April compared with the previous month on a sharp decline in multiple urban starts, data from the Canadian Mortgage and Housing Corporation showed.

OMERS Private Equity and the Alberta Investment Management Corporation (AIMCo) have sold a controlling stake in consultancy Environmental Resources Management (ERM) to private equity firm KKR, the Canadian funds said.

The energy sector climbed 1.4% as US crude prices were up 0.4% a barrel, while Brent crude added 0.3%.

The financials sector remain unchanged, while industrials fell 0.1%.

On the TSX, 123 issues were higher, while 99 issues fell in a 1.24-to-1 ratio favoring gainers, with 13.96 million shares traded.

The largest percentage gainers on the TSX were Endeavour Silver Corp, which jumped 3.9%, and Whitecap Resources Inc, which rose 3.6% after dividend hike.

Boralex Inc fell 2.9%, the most on the TSX, and the second biggest decliner was Innergex Renewable Energy , down 2.3%.

The most heavily traded shares by volume were Tetra Bio-Pharma, Whitecap Resources and Zenabis Global Inc.

The TSX posted 10 new 52-week highs and no new low.

Across Canadian issues there were 37 new 52-week highs and 18 new lows, with total volume of 31.07 million shares.