Canada Stocks: TSX edges up as 'cooler heads' weigh new virus variant

Canada Energy Partners

29/11/2021 21:26

(Updates to market close, adds investor quotes, details)
    * TSX ends up 23.04 points, or 0.1%, at 21,148.94
    * Energy rises 1.3%; materials up 1.3%

    By Fergal Smith
    TORONTO, Nov 29 (Reuters) - Canada's main stock index
rebounded on Monday, led by resource stocks, as investors became
more comfortable with the risks that the Omicron coronavirus
variant could pose to the global economic outlook.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 23.04 points, or 0.1%, at 21,148.94.
    On Friday, the index posted its biggest decline in more than
a year as news of the new, possibly vaccine-resistant variant
rattled investor sentiment.
    "Cooler heads are prevailing," said Allan Small, senior
investment adviser of the Allan Small Financial Group with iA
Private Wealth. "We become acclimatized to this sort of thing.
And I think that's what you are seeing in the markets today."
    Sentiment in global markets also improved as investors
waited for more details to assess the severity of the variant on
the world economy.  urn:newsml:reuters.com:*:nL1N2SK13H
    The energy sector  .SPTTEN  climbed 1.3%, helped by a
rebound in oil prices as some investors took the view that
Friday's slump in crude was overdone.  urn:newsml:reuters.com:*:nL1N2SK00Y
    The materials sector  .GSPTTMT , which includes precious and
base metals miners and fertilizer companies, added 1.3%.
    The Toronto market's record-breaking rally paused in the
last few weeks as weakness in commodities and concerns around
COVID-19 resurgence in Europe dented sentiment.
    Still, the index is on track to end the month in positive
territory with consumer discretionary stocks and miners leading
gains.
    Enbridge  ENB.TO  fell 2.1% to a three-month low after
Canada Energy Regulator (CER) late on Friday rejected the
company's  plan https://www.reuters.com/business/energy/canadian-regulator-rejects-enbridge-plan-contract-oil-pipeline-space-2021-11-26
 to offer a long-term contract to its customers to carry crude
oil on the country's biggest oil pipeline.  urn:newsml:reuters.com:*:nL1N2SH28O
    Investors await bank earnings this week, seeking more
information on dividends and buybacks. Earlier this month,
Canadian regulators granted financial institutions approval to
return more capital to shareholders.  urn:newsml:reuters.com:*:nL1N2RV29W
    Canadian third-quarter GDP data is due on Wednesday, which
could offer clues on the strength of the domestic economy.    

 (Reporting by Fergal Smith; Additional reporting by Amal S in
Bengaluru; Editing by Dan Grebler)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))