TSX gains for second day, led by energy shares

·1 min read
Toronto Stock Exchange's S&P/TSX composite index rises to a record high

By Fergal Smith

TORONTO (Reuters) - Canada's main stock index rose on Tuesday, adding to the previous day's rally, as higher oil prices boosted energy shares and investors weighed prospects of a strong finish to a bruising second quarter.

The Toronto Stock Exchange's S&P/TSX composite index ended up 73.66 points, or 0.4%, at 19,257.29, extending its rebound from a 15-month low on Friday.

Wall Street's major indexes also climbed as investors scooped up shares of megacap growth and energy companies after the stock market swooned last week on worries over a global economic downturn.

"The market is extremely oversold here. ... There was the feel of capitulation late last week," said Mike Archibald, a portfolio manager at AGF Investments. "So I think we are set up here for a nice bounce into the end of the quarter."

The TSX is on track to fall 12% in the second quarter, which would be its biggest quarterly decline since March 2020.

"Some of the parts of the markets that got really hit late last week - the defensive areas and particularly the energies - are acting quite well here today," Archibald added.

The energy sector climbed 2.3% as high summer fuel demand and tight supply boosted oil prices. U.S. crude oil futures settled nearly 1% higher at $110.65 a barrel.

Canadian retail sales data added to recent evidence of strength in the domestic economy. Retail sales rose 0.9% in April from March on higher sales at general merchandise stores, while a preliminary estimate showed sales climbing 1.6% in May.

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Will Dunham)

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