TSX gets lift from higher oil, gold prices

TORONTO • The Toronto stock market closed little changed Monday, well off the highs of the session amid worry centred on whether Greece will exit the eurozone and on subpar economic data from China.

The S&P/TSX composite index came down from an 84-point gain to close up 16.78 points at 15,100.7. Strength came from energy and gold stocks, which took off on rising prices for oil and bullion.

The Canadian dollar rose 0.37 of a cent to US80.22¢.

New York indexes were lower as the Dow Jones industrials closed down 95.08 points at 17,729.21, the Nasdaq was 18.39 points lower at 4726.01 and the S&P 500 index was off 8.73 points at 2046.74.

The TSX energy sector was up another 1.76%, building on last week’s 12% run-up as crude gained US$1.17 to US$52.86 a barrel. Oil prices have essentially stopped going straight down after plunging more than 50% since the highs of last summer. Last week, oil prices rose 7% despite data showing U.S. inventories at 80-year highs.

“With such a massive decline in such a short period of time, I can definitely see the argument in saying, we oversold,” said Gareth Watson, vice-president, investment management and research, at Richardson GMP Ltd. “Which means, in all likelihood, when you bounce back up you tend to overshoot to the upside. And I don’t know where this shakes out.”

Bullion gained US$6.90 to US$1,240.80 an ounce and the gold sector was ahead 1.3%.