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CANADA STOCKS-TSX rebounds as oil rallies, led by banks, energy stocks
February 12, 2016 / 4:05 PM / 2 years ago

CANADA STOCKS-TSX rebounds as oil rallies, led by banks, energy stocks

* TSX up 201.36 points, or 1.67 percent, to 12,288.73

* Nine of the TSX's 10 main groups were higher

TORONTO, Feb 12 (Reuters) - Canada's main stock index rebounded Friday after five days of losses, led by banks and energy stocks as crude oil prices rallied and after U.S. retail sales data offered encouragement about the economic outlook.

Relative calm returned to financial markets after a week of turmoil in which investors worried about the impact of negative interest rates on banking profits.

U.S. consumer spending appeared to have regained its momentum in January, supporting the possibility of the Federal Reserve continuing to raise interest rates this year.

Still, the index is on track to lose 3.7 percent for the week, having hit a three-week low on Thursday as disappointing corporate earnings added to broad investor unease about the global economy.

Cenovus Energy Inc rose 2.9 percent to C$14.36. The oil producer said it may sell up to $5 billion of stock, debt or other securities, a day after it announced a dividend cut, as the company shores up its balance sheet amid a slump in oil prices.

The overall energy group rose 2.8 percent as crude oil prices rallied on prospects of a coordinated production cut. It included a 3.6 percent rise in the shares of Suncor Energy Inc to C$30.49.

U.S. crude prices jumped 10 percent to $28.84 a barrel.

The most influential movers on the index were bank stocks, including Royal Bank of Canada, which rose 2.7 percent to C$66.76, and Toronto-Dominion Bank, which advanced 1.9 percent to C$49.95.

The overall financial services sector rose 2 percent.

At 10:52 a.m. EST (1552 GMT), the Toronto Stock Exchange's S&P/TSX composite index rose 201.36 points, or 1.67 percent, to 12,288.73.

Nine of the index's 10 main groups were higher.

On Thursday, the index hit its lowest since Jan. 21 at 11,985.68.

Among drags on the index, the shares of Telus Corp fell 2.7 percent to C$38.61 a day after the telecom company reported a fall in quarterly profit, hurt by increased competition and weaker demand for its wireless services.

Potash Corporation of Saskatchewan was down 1.9 percent at C$21.40. (Reporting by Fergal Smith; Editing by Bernadette Baum)

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