Canadian Shares Surge to Near Six-year Record

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Canadian Shares Surge to Near Six-year Record

Canada’s benchmark stock gauge ascended to its highest point in close to six years on Friday as concerns fueled by rising violence in Iraq propelled oil prices higher and boosted energy stocks.

Iraq’s top Shi’ite cleric called upon his followers today to take up arms to ward off a surging aggression by Sunni militants, in a drastic escalation of chaos that has raised the prospects of civil war and the likelihood to split the country.

The Toronto stock market’s main index, which has soared in 10 of the past 11 sessions, has gone up almost 10% this year. The energy sector played a major role in boosting the stock index.

David Cockfield of Northland Wealth Management told Reuters that he expected profits of energy producers to increase under the support of higher oil prices. He said Canada’s TSX is likely to perform better than Wall Street.

“This is going to be another outstanding quarter for companies in the oil patch. Our market is reasonably priced, with the exception of the energy sector, which still has some way to go,” said Cockfield.

The S&P/TSX composite gauge of the Toronto Stock Exchange added 51.73 points or 0.35% at 14,961.36. Seven of the ten core groups in the index advanced.  The index reached 14, 984.96, its highest point since June 19, 2008.

Energy producers climbed 1.4%. Suncor energy Inc rose 1.7% to 46.23 Canadian dollars as Canadian Natural Resources Ltd soared 1.5% to C$47.76.

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Financials ascended 0.3%. Royal Bank of Canada edged higher 0.6% at C$75.10 and Bank of Nova Scotia added 0.2% to C$70.56.

According to Bloomberg, Crescent Point added 3.1% to C$46.99 and Calfrac soared 2.6% to C$20.11.

Amaya Gaming was up 40% to C$19.78 after it said it was in a deal to takeover PokerStars.

Pilot Gold declined 4.9% to C$1.55 after announcing intentions to buy Cadillac.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com