TSX closes at almost six-year high

A sign shows TSX information in Toronto in this file photo. (REUTERS/Mark Blinch)

A sign shows TSX information in Toronto in this file photo. (REUTERS/Mark Blinch)

John Tilak, REUTERS

, Last Updated: 11:51 PM ET

TORONTO - Canada's main stock index climbed on Monday to its highest in almost six years, driven by gains in financial shares and in the energy sector after oil prices rose.

Investors also benefited from a spilling over of positive sentiment from the previous week, when the TSX's 1.6% gain was fuelled by an upbeat U.S. jobs report and a move by the European Central Bank to cut rates to record lows. The Toronto market ended a seventh straight session higher and has advanced more than 9% this year.

"Optimism from last week has continued into this week," said Youssef Zohny, portfolio manager at Stenner Investment Partners, a subsidiary of Richardson GMP.

While financial and energy shares have been driving the gains this year, it would be interesting to see if those groups can keep up the momentum as volatility increases in the summer months, he added.

The Toronto Stock Exchange's S&P/TSX composite index closed up 32.31 points, or 0.22%, at 14,871.21. Eight of the 10 main sectors on the index were higher. Financials, the index's most heavily weighted sector, added 0.3%.

Royal Bank of Canada gained 0.7%  to $75.24, and Toronto Dominion Bank rose 0.7% to $55.24. With oil prices jumping more than 1%, shares of energy producers climbed 0.7%.

Suncor Energy Inc was up 1.3% at $43.39, and Canadian Natural Resources Ltd advanced 0.7% to $46.31.

In corporate news, Ritchie Bros Auctioneers Inc jumped 4%, to $26.26, after Cantor Fitzgerald raised its rating on the stock.

 


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