Toronto index gains as oil stocks jump 3%

Canadian stocks rose on Monday as a jump in crude prices lifted energy shares and outweighed concerns about slowing global growth that drove the TSX index to its biggest weekly loss since mid-July.

The Toronto Stock Exchange's S&P/TSX composite index rose 0.2% to 20,681.83 in morning trade after shedding 0.9% last week.

Energy stocks led gains with a 3.2% jump as crude prices hit a one-week high, supported by concerns over shut output in the United States because of damage from Hurricane Ida.

The TSX index has added 18.8% so far this year, but retreated from record highs last week as concerns about a slowdown in economic recovery and rising COVID-19 cases globally dented investors' confidence in risky assets.

"We've got a good bounce to start the day and that's more getting back what we lost on Friday," said Gregory Taylor, portfolio manager at Purpose Investments. "We'll probably hover around this level until we get a better sense of direction from either companies or macros," he said."

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Investors will focus on domestic inflation data later this week for cues on the nation's economic health and monetary policy outlook.

Highlights

Canadian Pacific Railway Ltd rose nearly 1% after Kansas City Southern said it planned to accept the railroad operator's $27.2 billion cash-and-stock acquisition offer over a $29.6 billion deal to sell itself to Canadian National Railway Ltd

Crescent Point Energy Corp jumped 6.3% and was the largest percentage gainer on the TSX after the oil producer raised its fourth-quarter dividend.

The TSX posted 9 new 52-week highs and one new low.

Across all Canadian issues there were 29 new 52-week highs and 5 new lows, with total volume of 19.32 million shares.