Canadian stocks rose for the first time in six days on Friday, as energy and financial companies rallied amid surging oil prices and easing concerns about the global economy.
The Standard & Poor’s/TSX Composite Index gained 293.87 points, or 2.4%, to 12,381.24.
The index had lost 5.4% in five days before the rally, pushing it to its lowest level in three weeks. Even after decline of 5% so far this year, the S&P/TSX is the best-performing developed market in the world, after being among the worst in the past year.
Energy companies benefited from the recovery in oil. Suncor Energy and Canadian Natural Resources both added more than 3.9% Pengrowth Energy jumped 10.6%
Banks, which have been the biggest source of pain for Canadian stocks in the market’s latest rout, jumped as Royal Bank of Canada catapulted 4.6%, while Toronto-Dominion Bank gained 3.7%.
Brookfield Asset Management Inc. rallied 4.5%. Canada’s largest alternative asset manager said funds from operations grew 83% during the quarter from a year ago, while also saying net income fell 30%
Bombardier Inc. jumped 3.9% after the troubled aircraft maker won a contract with Alberta Transit valued at about $391 million.
Health-care stocks also surged. Concordia Healthcare Corp. and Valeant Pharmaceuticals International both gained more than 5.4%
Other prominent risers on the day were Teck Resources Ltd., up 24.3%, and First Quantum Minerals Ltd., which rose 11.9%
ON BAYSTREET
The TSX Venture Exchange advanced 2.85 points to 511.14
All 13 TSX subgroups were higher on the day, with metals and mining strengthening 10.8%, financials better 3.6%, and energy jumping 3.3%.
ON WALLSTREET
U.S. equities closed sharply higher on Friday as European and American bank stocks — as well as oil prices — bounced sharply, while investors digested U.S. economic data.
The Dow Jones industrial average vaulted 313.66 points, or 2%, to 15,973.84, as Goldman Sachs and JPMorgan Chase contributed the most gains, snapping a five-day losing streak but still lost about 1.4% for the week.
The S&P 500 hiked 23.35.7 points, or 2%, to 1,864.78, as financials rose 4%. The index also snapped a five-day losing streak.
The NASDAQ index advanced 70.68 points, or 1.7%, to 4,337.51
The Dow and S&P are also still down more than 8% year-to-date, while the Nasdaq is down over 13%
JPMorgan's stock gained 8.3% on Friday after CEO Jamie Dimon bought over $25 million U.S. worth of the company's stock.
Investors also digested U.S. retail sales, which rose 0.2% in January, above the 0.1% expected gain. Import prices in the U.S. fell 1.1 percent, less than expected.
Prices for the 10-year Treasury dipped sharply, raising yields to 1.75% from Thursday’s 1.65%. Treasury prices and yields move in opposite directions.
Oil prices hiked $2.88 a barrel to $29.01 U.S.
Gold prices waned $7.98 to $1,238.72 U.S. an ounce.
