(Adds trader’s quote and details; updates prices)
* TSX closes up 78.12 points, or 0.52 percent, at 15,105.28
* Materials group rises 2.8 percent
* Nine of the TSX’s 10 main groups rise
By Fergal Smith
TORONTO, July 10 (Reuters) – Canada’s main stock index rose
on Monday, rebounding from a seven-month low at the end of last
week, led by its materials and energy groups as commodity prices
The materials group, which includes precious and base metals
miners and fertilizer companies, added 2.8 percent, while energy
climbed nearly 1 percent.
Still, the materials group has lost more than 15 percent
since Feb. 10. Energy is down nearly 22 percent this year.
“There is certainly no rush to reestablish positions in
these sectors, but there’s certainly some people dipping their
toe in the water,” said Bruce Latimer, senior equity trader at
Fertilizer producer Potash Corp was the most
influential gainer, rising 5.2 percent to C$22.13, while Agrium
Inc, which is set to merge with Potash this year,
advanced 5.4 percent to C$123.33.
Barrick Gold Corp rose 2.8 percent to C$20.37. Gold
futures rose 0.2 percent to $1,210.9 an ounce.
U.S. crude oil futures settled 17 cents higher at
$44.40 a barrel, but increased drilling activity in the United
States and uncertainty over Libyan and Nigerian production cuts
clouded the future supply outlook.
Canadian Natural Resources Ltd climbed 1.7 percent
The Toronto Stock Exchange’s S&P/TSX composite index
closed up 78.12 points, or 0.52 percent, at 15,105.28.
On Friday, the index posted its lowest close since November
Gains for the index on Monday came as Wall Street started
the week on an upbeat note, led by gains in technology stocks as
investors were optimistic ahead of earnings.
Nine of the TSX’s 10 main groups ended higher, including a
0.1 percent gain for the financials group, which accounts for
about a third of the index’s weight.
Home Capital Group fell 4.4 percent to C$14.47. The
stock has retreated in recent sessions following news that
Canada plans to ban some bundled residential mortgages to clamp
down on risky lending.
Consumer discretionary shares climbed 0.7 percent, with
cable company Cogeco Communications Inc rising 2.9
percent to C$82.09 following news its subsidiary Atlantic
Broadband would buy MetroCast’s assets for about $1.4 billion,
expanding its presence in the United States.
Ritchie Bros Auctioneers Inc fell 7.2 percent to
C$34.77 after it posted on Friday its June 2017 auction metrics,
while CIBC cut its target price on the stock to $28 from $36.
(Additional reporting by Solarina Ho; Editing by Meredith
Mazzilli and James Dalgleish)