TORONTO: Canada’s main stock index rose on Thursday as heavyweight energy stocks tracked gains in oil prices, while hawkish signals from the Canadian and US central banks cleared uncertainty over their policy tightening plans this year.
At 9:52 a.m. ET (14:52 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 241.33 points, or 1.17%, at 20,837.22.
Energy stocks were the best performers in early trade, rising 2.9% as oil prices hit a seven-year high on concerns that political uncertainty in Russia and the Middle East will dent supply.
“Normalizing production in Libya, Nigeria, Venezuela and in other OPEC nations all suggest that operational risks are now easing. This leaves the conflict between Russia and Ukraine, alongside tensions in the Middle East, as the largest sources of supply uncertainty,” analysts at TD Securities wrote in a note.
The TSX ended flat on Wednesday after both the Bank of Canada and the Federal Reserve said they would raise interest rates this year to combat rising inflation, with the Fed planning a hike in March.
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