TSX rebounds as oil price drop boosts industrial and mining shares
Canada's main stock index rose 0.5 per cent on Monday as falling oil prices supported investor sentiment at the start of the month.
Canada's S&P/TSX Composite Index rose by 181.06 points, or 0.5 per cent, to end at 35,801.09 on Monday, according to Mint.
The rally was led by gains in industrial and metal mining shares, helping the index recoup some of the losses seen on Friday.
Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James, said the movement was due to repositioning for the new month, support from oil, and developments in the Middle East.
US crude oil futures settled 7.4 per cent lower at $96.46 a barrel following talks between Iranian and Qatari officials. This drop lifted hopes for the stabilisation of Middle East crude supply.
The materials group rose 2.3 per cent, while industrials added 2.5 per cent. WSP Global, a construction and engineering firm, saw its shares rise 5.4 per cent.
The energy sector was one of two major sectors that ended lower, dropping 4.8 per cent. Meanwhile, domestic data showed Canada's manufacturing sector contracted in October for the first time this year.