Canadian stocks have recovered and rebounded from a four-day slump, with energy stocks surging amid increasing speculation that recent losses were overdone.
The Standard & Poor’s/TSX Composite Index (SPTSX) increased by 1.3 percent to 14,052.97, representing the biggest rise in over a year.
Paul Reynolds, chief executive officer at Canaccord Genuity Group Inc., told Bloomberg:
“People are seeing really deep value in the energy and mining sectors. We’re encouraging our clients to look at those names and accumulate positions.”
The energy sector, the second most heavily weighted group in the index (S&P/TSX Energy Index), went up by 3.2 percent – the biggest increase since November 2011.
Suncor Energy, Canada’s largest oil sands producer, surged by 2.7 percent to C$37.28. Canada’s largest pipeline company, Enbridge, went up by 3.5 percent to C$51.03. The country’s second largest oil and gas company, Canadian Natural Resources, went up by 3 percent to C$37.11. After TD Securities recommended Parex Resources (TSE:PXT), the Canadian oil producer, soared by 7.7 percent to C$10.93.
The country’s financial sector also performed well, up by 0.7 percent, with the Royal Bank of Canada up 0.6 percent to C$77.69. The country’s second largest bank, Toronto-Dominion Bank, gained 1.4 percent to C$51.97.
The nation’s largest airline, Air Canada, soared by 6.7% to $7.21, WestJet Airlines Ltd. also went up, by 6.1%.