Canada’s main stock index rose on Tuesday as energy shares hit their highest in more than five years on soaring oil prices, which also fueled inflationary concerns that capped further gains.
At 9:40 a.m. ET (14:40 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 22.09 points, or 0.1%, at 21,326.49, with energy shares leading gains.
The energy sector climbed 1.2% as oil prices continued to rally on prospects of the United States, the world’s biggest oil consumer, banning Russian oil imports as soon as Tuesday in response to Russia’s invasion of Ukraine.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.1% as gold futures rose 1.2% to $2,018.3 an ounce.
“Looks like the market’s starting to get comfortable with moves in commodities, as we’re seeing some global markets like Europe in a really over-sold conditions,” said Gregory Taylor, portfolio manager at Purpose Investments.
“Hopefully we’re ready to have a bit of a stabilization here.”
Intertape Polymer Group Inc soared 76.8% and was the largest percentage gainer on the index, after the packaging products maker said it would be taken private by investment firm Clearlake Capital Group in an all-cash deal valued at $2.6 billion.
The ongoing Russia-Ukraine conflict and concerns around soaring inflation have roiled global markets in recent weeks, however, their impact on the TSX has been cushioned by stronger commodities.
Further advances in the index were limited by weakness in Toronto-listed technology stocks, down 0.9%, tracking weakness in Nasdaq index.
On the economic front, Canada posted a trade surplus of C$2.62 billion ($2.04 billion) in January, beating expectations, as imports fell 7.4%, but exports were down marginally, Statistics Canada data showed.