TORONTO: Canada’s main stock index rose more than 1 percent in morning trade on Wednesday as higher oil prices boosted shares of energy companies and investors bought back into banks after the initial shock of Britain’s vote to exit the European Union.
At 10:01 a.m. EDT (1401 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 156.02 points, or 1.13 percent, to 13,998.71.
Nine of the index’s 10 main groups were in positive territory, with healthcare stocks marginally lower, and advancers outnumbers decliners by more than 13 to 1.
The broad gains echoed moves higher in Asian and European stock markets as investors bet on central banks going easier on monetary policy in coming months.
The most influential gainers on the Canadian index included some of its biggest banks, with Royal Bank of Canada up 0.6 percent to C$76.83 and Bank of Nova Scotia advancing 0.7 percent to C$64.22.
But Canadian Imperial Bank of Commerce fell 3.6 percent to C$96.83 after it said it would buy Chicago-based PrivateBancorp Inc in a cash-and-stock deal valued at about $3.8 billion.
The heavyweight financials group gained 0.6 percent overall, but has still only recovered around half the value lost in the two days after the Brexit vote.
Energy stocks climbed 1.7 percent as a potential strike in Norway and falling production in Venezuela supported oil prices and traders moved money back into the market as the initial shock of Britain’s EU exit vote wore off.
Suncor Energy Inc gained 1.1 percent to C$35.31 and Canadian Natural Resources added 2 percent to C$39.08.
Canadian National Railway Co advanced 1.2 percent to C$75.88, and industrials rose 1.3 percent overall.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.6 percent. Gold renewed its post-Brexit gains after a pause on Tuesday.
Empire Co Ltd, owner of the Sobeys supermarket chain, fell 8.6 percent to C$19.83 after its earnings disappointed.
