March 28, 2017 / 4:37 PM / 4 months ago

CANADA STOCKS-TSX climbs to 11-day high as oil rallies

3 Min Read

(Updates prices)

* TSX rises 53.01 points, or 0.34 percent, to 15,559.23

* Index touches its highest intraday since March 17 at 15,583.52

* Six of the TSX's 10 main groups gain

TORONTO, March 28 (Reuters) - Canada's main stock index rose on Tuesday to an 11-day peak as higher oil prices drove gains in heavyweight energy shares, offsetting losses for gold miners.

At 10:49 a.m. ET (1449 GMT), the Toronto Stock Exchange's S&P/TSX composite index rose 53.01 points, or 0.34 percent, to 15,559.23. It touched its highest intraday level since March 17 at 15,583.52.

The index has rebounded more than 2 percent from a three-month low last week at 15,241.55, helped by Canada's government holding off from increased taxes on investors in its budget.

A severe disruption to Libyan oil supplies and comments from officials suggesting the Organization of the Petroleum Exporting Countries could extend its production cuts deal to the end of the year boosted oil prices.

U.S. crude prices were up 1.2 percent at $48.28 a barrel, and the energy group gained 0.6 percent, led by a nearly 1 percent rise in the shares of pipeline company Enbridge Inc to C$55.66.

Six of the index's 10 main groups rose. Industrials advanced 0.7 percent as railroad stocks climbed.

Royal Bank of Canada rose nearly 1 percent to C$97.70, and the overall financials group gained 0.5 percent as data showed that U.S. consumer confidence rose to its highest since December 2000. That boosted the shares of U.S. banks and helped to stall the recent decline in U.S. Treasury yields.

The yield on the Canadian government 10-year benchmark bond was unchanged at 1.606 percent, breaking a downward trend since mid-March.

A rise in bond yields would reduce the value of insurance companies' liabilities and increase net interest margins of banks.

Goldcorp's shares fell 4.4 percent to C$20.52, and Barrick Gold's stock declined 1.3 percent to C$25.85 as spot gold prices edged lower from a one-month intraday high on Monday.

The two companies on Tuesday announced they would team up to work on developing gold mines in northern Chile.

The overall materials group, which includes precious and base metals miners and fertilizer companies, lost 0.7 percent.

Reporting by Fergal Smith Editing by W Simon

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