Energy boost lifts Toronto shares; tech stocks weigh

Canada's energy-heavy main stock index gained on Monday, as oil prices jumped more than 1% on the prospect of improving demand, although gains were limited by a slide in technology stocks.

At 9:41 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 32.02 points, or 0.16%, at 20,434.68.

"In the Canadian stock market ... we're playing a little bit of catch up to US stocks as they outperformed Canadian stocks in the last five sessions," said Michael White, portfolio manager at Picton Mahoney Asset Management.

"That, coupled with the move in oil is probably the easiest way to explain today's move."

TSX retreats on Evergrande fears; set for third straight weekly loss

Energy stocks led gains, gaining 4%, as oil prices rose for a fifth straight day with Brent at its highest since October 2018 and heading for $80 amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions.

On the other hand, technology stocks fell 1.6% tracking the US tech-heavy Nasdaq index.

Canada's main index has fallen nearly 1% in September and is on course to snap a seven-month winning streak on worries of a slowdown in the global economic recovery, although a recent rebound in commodity prices helped limited losses.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.8% and was on course to snap a two-day losing streak.

Highlights

Oil producers MEG Energy Corp and Crescent Point Energy Corp were the largest percentage gainers on the index.

The TSX posted eight new 52-week highs and five new lows.

Across all Canadian issues there were 36 new 52-week highs and 20 new lows, with total volume of 46.32 million shares.