Toronto index rebounds as energy stocks gains on oil rally

Canada's energy-heavy main stock index rebounded on Tuesday, as oil prices hit their highest levels in at least three years and technology shares tracked a jump in the US tech-heavy Nasdaq index.

At 9:35 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 46.24 points, or 0.23%, at 20,098.49, a day after the benchmark index fell to its lowest in two and a half months.

Leading gains were energy stocks, up 1.5%, gaining for a fifth straight session as oil prices hit their highest levels in at least three years.

"We've got big moves in oil prices to start and certainly the energy stocks have been on the bright spots in Canada, year-to-date," said Gregory Taylor, portfolio manager at Purpose Investments.

Toronto-listed technology stocks rose 0.5%, tracking gains in the US tech-heavy Nasdaq index.

"The tone of the market feels good, to start with a bit of a bounce in some of US tech stocks and the big question will be whether this is just technicals or whether there's something fundamental behind," Taylor added.

Toronto index retreats as tech stocks hit 2-month low

The Canadian index has gained 15% so far this year, led by hopes for a steady economic recovery from the pandemic-driven slump. However, the index recently lost its steam as worries around higher inflation and slowdown in economic growth rattled investor sentiment.

Limiting further advances were materials stocks, which include precious and base metals miners and fertilizer companies, losing 0.8% as gold futures fell 0.7% to $1,754.8 an ounce.

Meanwhile, the nation posted a trade surplus of C$1.94 billion ($1.54 billion) in August as exports rose and imports declined, Statistics Canada said.

Highlights

Oil producers Vermilion Energy Inc and Birchcliff Energy Ltd were the largest percentage gainers on the TSX.

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

Across Canadian issues, there were 32 new 52-week highs and 14 new lows, with total volume of 20.32 million shares.