Oil boosts energy stocks, lifts TSX

The energy sector ended up 1.7 per cent after the price of oil gained about 2 per cent as Iraq voiced support for OPEC+'s oil cuts ahead of a meeting in two weeks.

Quebecor led gains on the capped communication services index with a 2.5 per cent rise, after the telecom firm posted a rise in third-quarter profit. (Image credit: Reuters)

Canada's main stock index reversed course to close higher on Friday, helped by a boost in energy stocks as oil prices gained. The Toronto Stock Exchange's S&P/TSX composite index closed up 67.06 points, or 0.34 per cent, at 19,654.47.

Still, the index closed lower for the week after posting the biggest weekly jump since April 2020 in the previous week.

The energy sector ended up 1.7 per cent after the price of oil gained about 2 per cent as Iraq voiced support for OPEC+'s oil cuts ahead of a meeting in two weeks.

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"Oil was having a nice bounce today. It has clearly been under pressure for the last week ... that has got all the big cap energy stocks up," said Mike Archibald, a portfolio manager at AGF Investments.

Technology stocks were also among the big gainers, up 1.9 per cent, as Constellation Software shares rose 3.7 per cent to hit a record high following upbeat results and Shopify added 1.6 per cent.

"Technology names in the U.S. and in Canada are breaking out again here and certainly look like potential for market leadership going forward," Archibald said.

The materials sector, which includes precious and base metals miners and fertilizer companies, slipped 0.7 per cent, as prices of most nonferrous metals fell after hawkish comments by the U.S. Federal Reserve Chair Jerome Powell signaled chances of another rate hike.

A 3.3 per cent decline in First Quantum (FM.TO) shares also weighed on the materials index. Chinese copper miner Jiangxi Copper has increased its stake in the Canadian miner to 18.5 per cent from 18.3 per cent.

Altus Group tumbled 21.8 per cent to the bottom of the TSX, after the real estate fund intelligence provider reported lower-than-expected third-quarter results.

That dragged the broader real estate index down 0.6 per cent.

Quebecor led gains on the capped communication services index with a 2.5 per cent rise, after the telecom firm posted a rise in third-quarter profit.

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