(Adds portfolio manager quotes and details on Canadian Natural
Resources, CIBC and background and updates prices)
* TSX closes up 70.04 points, or 0.45 percent, at 15,652.08
* Eight of the TSX’s 10 main groups end higher
* Energy group climbs 1.6 pct
* Home Capital Group Inc rallies 16.8 pct
By Fergal Smith
TORONTO, May 8 Canada’s benchmark stock index
rose on Monday as energy stocks climbed after investors gauged
the recent selloff had gone too far, while shares of Home
Capital Group Inc recovered from a nearly 14-year low
to end 16.8 percent higher.
It was the second straight session of gains for the Toronto
Stock Exchange’s S&P/TSX composite index after it had
posted on Thursday its lowest close in six weeks. The energy
group, which had slumped last week to its lowest since
September, rose 1.6 percent.
“Investors think at this point maybe the market is
oversold,” said Brian Pow, vice president, research and equity
analyst at Acumen Capital Partners.
U.S. crude oil futures extended their recovery from a
five-month low last week, settling up 21 cents at $46.43 a
barrel after Saudi Arabia’s oil minister said that he expected
major oil producers to consider extending their deal to cut
supply possibly into next year.
Canadian Natural Resources Ltd climbed 1.8 percent
to C$43.04, while Suncor Energy Inc gained 1.5 percent
Suncor plans to submit an application to regulators for a
new thermal oil sands project later this year, which could
eventually produce up 160,000 barrels per day.
Home Capital Group Inc suspended its dividend,
tapped its credit line and added new directors, the latest
attempts from Canada’s biggest non-bank lender to restore
investor confidence and stem the flow of customer withdrawals.
Its shares tumbled to its lowest since 2003 in early trade
before recovering to end up 16.8 percent at C$6.83.
The TSX closed up 70.04 points, or 0.45 percent, at
15,652.08. Eight of the index’s 10 main groups ended higher.
Recent weakening of the Canadian dollar improves the
profitability of those companies on the index that are
exporters, Pow said.
The loonie touched a 14-month low on Friday at C$1.3793, or
72.50 U.S. cents.
Institutional Shareholder Services urged PrivateBancorp
stockholders to reject Canadian Imperial Bank of
Commerce’s latest takeover offer, citing possible
Canadian housing market contagion that could undermine the $4.9
billion cash-and-stock bid.
CIBC’s shares edged up 0.3 percent to C$108.95, while the
overall financials group gained 0.2 percent.
The materials group, which includes precious and base metals
miners and fertilizer companies, added 0.3 percent even as
copper slid to a four-month low after data showed a sharp drop
in imports into China.
(Additional reporting by Solarina Ho; Editing by Meredith
Mazzilli and Lisa Shumaker)