Roundup: Toronto stocks edge higher despite disappointing oil cuts

Canada's main stock market in Toronto kept rising on Tuesday after Monday's break for Family Day, as global equity markets rebounded despite a disappointed deal on oil production cuts.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index added 173.74 points, or 1.40 percent, to close at 12,554.98 points. All of the TSX index's eight main sub-sectors were higher.

Oil prices lost Tuesday as top producers Russia and Saudi Arabia disappointed the market by agreeing only to a conditional output freeze.

The West Texas Intermediate for March delivery moved down 40 cents to settle at 29.04 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery decreased 1.21 dollars to close at 32.18 dollars a barrel on the London ICE Futures Exchange.

Despite Russia and Saudi Arabia committing to zero production cuts in their agreement announced Tuesday, Canadian energy executives see the deal as a precursor to a major price rebound.

"This agreement may ultimately be looked at as a true catalyst, in terms of setting a floor on oil," Journey Energy CEO Alex Verge told BNN.

"I believe that even with the assimilation of Iran volumes, the market can return to balance within the next 12 months," Verge said.

Michael Binnion, CEO of Calgary-based Questerre Energy Corp. and president of the Quebec Oil & Gas Association, also interpreted the agreement positively, even while stressing prices are likely to remain depressed for the next few months.

"A cap on Russian and Saudi production ... may give the market a psychological boost that the bottom has arrived," Binnion said.

TSX energy group and financial stocks edged higher by 0.96 percent and 2.11 percent respectively, while the metals & mining section rocketed 9.13 percent. First Quantum Minerals Ltd. went up 18.84 percent, Teck Resouces added 10.25 percent, but Kinross Gold Corporation was down 9.59 percent and Barrick Gold Corp fell 4.96 percent.

Among consumer stocks, Restaurant Brands International Inc, the owner of Burger King and the Tim Hortons coffee and doughnut chain, jumped 5.89 percent to 46.91 Canadian dollars per share after its earnings beat expectations.

On the economic front, Statistics Canada reported that manufacturing sales increased 1.2 percent to 51.6 billion Canadian dollars in December, the second straight gain.

In December, sales increased in the motor vehicle and wood products industries, representing over half of the national gain.

Elsewhere, the Canadian Real Estate Association reported Tuesday that national home sales edged up 0.5 percent from December to January. Actual (not seasonally-adjusted) activity was up 8 percent compared to January 2015. The number of newly listed homes retreated by 4.9 percent from December to January.

The average price of a Canadian home sold in January increased by 17 percent to 470,297 Canadian dollars compared to the same month a year ago, according to the report.

The Canadian dollar was traded higher at 0.7204 U.S. dollar, compared with Friday's closing rate of 0.7214 U.S. dollar. Enditem