Canada's main stock market in Toronto rose for a second day Wednesday as higher crude prices boosted energy shares and investors bought back into banks after the initial shock of Britain's vote to exit the European Union.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index gained 194.05 point, or 1.40 percent, to close at 14,036.74 points. All of the TSX index's eight main sub-sectors were higher.

Crude oil prices surged 4 percent on Wednesday, with Brent settling above the psychological 50 U.S. dollars a barrel mark, after a larger-than-expected drawdown in U.S. crude inventories.

U.S. crude's West Texas Intermediate (WTI) futures also closed up 4.2 percent at 49.88 U.S. dollars. WTI's session high was 50 U. S. dollars.

As a result, TSX energy sector surged 2.99 percent as metals & mining group saw a 4.06 percent advance.

Canada's biggest banks were the stars of the show, as Royal Bank of Canada up 0.68 percent to 76.90 Canadian dollars (59.27 U. S. dollars)  and Bank of Nova Scotia advancing 0.74 percent to 64. 51 Canadian dollars.

But Canadian Imperial Bank of Commerce fell 2.55 percent to 97. 92 Canadian dollars after it said it would buy Chicago-based PrivateBancorp Inc. in a cash-and-stock deal valued at about 3.8 billion U.S. dollars.

Energy stocks climbed 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 gained 1.86 percent to 35.59 Canadian dollars and Canadian Natural Resources added 3.58 percent to 39.67 Canadian dollars.

Canadian National Railway advanced 1.41 percent to 76.02 Canadian dollars, as part of an overall surge by industrials.

Markets will be closed in Canada on Friday, July 1, for Canada Day.

The Canadian dollar traded higher at 0.7707 U.S. dollar, compared with Monday's closing rate of 0.7672 U.S. dollar.

Source:
courtesy of XINHUA NEWS AGENCY

by Xinhua News Agency

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