Canadian stocks rally as oil advance boosts energy stocks

Canada's main stock market in Toronto enjoyed a strong session on Tuesday, as a big jump in the price of crude oil boosted energy stocks.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index gained 158.66 points, or 1.18 percent, to close at 13,581.42 points. Half of the TSX index's eight main sub-sectors were higher.

Oil prices extended gains Tuesday as Saudi Arabia and Russia agreed to freeze crude output ahead of a much-anticipated meeting of producers on Sunday.

The West Texas Intermediate for May delivery moved up 1.81 U.S. dollars to settle at 42.17 dollars a barrel, the highest level in 2016 and the best since November.

In response, the energy sector rose 5.15 percent. Encana Corporation rose 9.27 percent to 8.84 Canadian dollars (6.93 U.S. dollars) per share, RMP Energy Inc. hiked 11.11 percent to 1.60 Canadian dollars, while Athabasca Oil Corporation added 8.08 percent to 1.07 Canadian dollars.

Metals and mining sector also increased 6.65 percent. First Quantum Minerals Ltd. raked in 10.79 percent to 7.19 Canadian dollars, and Teck Resources Limited rose 7.66 percent to 11.10 Canadian dollars.

On corporate news, Canadian retailer giant Loblaw announced plans to build 50 new stores and renovate 150 others this year, which will generate thousands of retail and construction jobs. Loblaw shares went up 0.07 percent to 69.15 Canadian dollars.

Meanwhile, Goldman Sachs cut the target price on Agrium Inc. to 107.00 Canadian dollars from 114.00 Canadian dollars. RBC raised the price target on Rogers Communications to 55.00 Canadian dollars from 53.00 Canadian dollars.

The International Monetary Fund has grown more pessimistic about Canada's economic fortunes despite the economy's fast start to the year, as the agency further reduced its growth forecasts, citing the continuing damage in the energy sector and a dimmer global outlook.

In its World Economic Outlook released Tuesday, the IMF cut its projection for Canadian real gross domestic product growth to 1.5 percent in 2016, from 1.7 percent in its previous quarterly forecast update in January. It trimmed its 2017 growth forecast to 1.9 percent from 2.1 percent.

Meanwhile, the Canadian dollar hit its highest finish since July 14, according to the Bank of Canada. The loonie has been on the rise since it bottomed out at 68 U.S. cents in January.

A rebound in the price of oil also contributed to the flight of the loonie. Oil has regained ground since it touched its recent low on Feb. 11 at 26.21 U.S. dollars a barrel.

The Canadian dollar traded higher at 0.7838 U.S. dollar Tuesday, compared with Monday's closing rate of 0.7753 U.S. dollar. Endit