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CANADA STOCKS-TSX eyes 1.8 pct gain on week as banks, energy shares rise
December 9, 2016 / 3:14 PM / a year ago

CANADA STOCKS-TSX eyes 1.8 pct gain on week as banks, energy shares rise

(Adds details on specific stocks, updates prices to close)

* TSX up 42.86 points, or 0.28 percent, to 15,338.06

* Seven of the TSX’s 10 main groups move higher

TORONTO, Dec 9 (Reuters) - Canada’s main stock index extended a 19-month high on Friday and was heading for a 1.8 percent jump over the week as heavyweight energy and bank stocks gained with rising oil prices and bond yields.

The energy group climbed 0.7 percent, with shares in major player Suncor Energy Inc up 0.7 percent to C$43.15, as crude gained ahead of a weekend meeting of producers that could result in a agreement for further production cuts.

Cenovus Energy Inc added 1.6 percent to C$20.81 a day after it said it planned to increase its 2017 capital budget by about 24 percent and resume work on the expansion of its oil sands project in Christina Lake.

At 9:53 a.m. EDT (1453 GMT), the Toronto Stock Exchange’s S&P/TSX composite index rose 42.86 points, or 0.28 percent, to 15,338.06. It touched its highest intraday since May 2015 at 15,339.04.

Seven of the index’s 10 main groups were in positive territory, with the financials group up 0.5 percent as 10-year bond yields rose solidly for a third straight day.

Higher bond yields reduce the value of insurance companies’ liabilities and increase net interest margins of banks.

The country’s largest lender, Royal Bank of Canada, advanced 0.7 percent to C$90.06 and Toronto-Dominion Bank rose 0.7 percent to C$65.61.

Fairfax Financial Holdings shares slipped 0.5 percent to C$605.97.

A subsidiary of Fairfax, one of the shareholders who helped keep Bank of Ireland out of state hands in 2011, is selling half of its remaining stake in the Irish lender, the bank managing the sale said on Friday.

Shares in BRP Inc, the maker of Ski-Doo snowmobiles and Sea-Doo watercraft, jumped 6.7 percent to C$27.47. It reported a better-than-expected quarterly profit as it sold more year-round products.

Industrials rose 0.3 percent, while the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.2 percent. (Reporting by Alastair Sharp; Editing by Nick Zieminski)

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