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TSX ends up 1.5%, at 20,542.03
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Posts its biggest gain since Jan. 6
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Air Canada gains 11.6% as company lifts profit forecast
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Energy rises 3.4%; oil settles 4.1% higher
(Adds economist quote in paragraph 6 and details throughout;
updates prices)
By Shristi Achar A and Fergal Smith
May 5 (Reuters) - Canada's main stock index rallied on
Friday as a rebound in oil prices lifted energy shares, while
improved outlooks from companies including Air Canada beat back
concerns over a fallout from the U.S. regional bank turmoil.
The Toronto Stock Exchange's S&P/TSX composite index ended up 303.84 points, or 1.5%, at 20,542.03, its
biggest gain since Jan. 6.
On Thursday, it posted its lowest closing level in four
weeks, while it was down 0.5% for the week as oil prices swung
wildly, the Federal Reserve raised interest rates, and jitters
in the U.S. banking sector raised fears of tighter credit
conditions.
"Investor sentiment is improving," said Colin Cieszynski,
chief market strategist at SIA Wealth Management. "Some of the
waves of fear we had relative to U.S. banking and any issues
around the Fed meeting have kind of washed through now and we
may soon be seeing bargain hunters stepping in."
The move higher for the TSX came as domestic data showed the
economy adding 41,400 jobs in April, which was far more than
expected. Wall Street also posted strong gains as U.S. jobs data
allayed fears of a recession.
"The serial pattern of too much bearishness toward Canadian
and U.S. jobs continues," said Derek Holt, vice president of
capital markets economics at Scotiabank. "They keep surprising
to the upside."
The Toronto market's energy sector gained 3.4% as oil clawed back some of its recent sharp decline, settling 4.1% higher at $71.34 a barrel.
Shares of Air Canada surged 11.6% as the airline raised its full-year forecast for core profit. (Reporting by Fergal Smith in Toronto and Shristi Achar A and Vansh Agarwal in Bengaluru; Editing by Shilpi Majumdar and Jonathan Oatis)
