Canada stock index rises to record high as oil prices drop

TSX opens at 20,928 points, or 0.5%, in 108.16 notes. Toronto, October 15 : Reuters - Canada's main stock index rose on Friday to a record high as oil prices climbed and investors cheered the move into a seasonally strong period for the market.

The Toronto Stock Exchange's S&P TSX composite index ended at 20.928 points, or 0.5%, and gained 108.16 points or 0.37%. 10, which was sold close to the record high it noted on September 3 ; eclipsing the high level found on Sept. 4 again on sept. 10 ).

It up 2.5% for the week, its biggest weekly advance since March.

We are now entering the period that is very positive for stock markets and are likely going to see a Santa Clause rally between now and year end, said Irwin Michael, portfolio manager at ABC Funds, referring to seasonal move that occasionally happens in stocks.

What drives oil and gas prices right now are both the recovery of crude prices, Michael added.

U.S. crude oil futures were lower at $82.28 a barrel on forecasts of a supply deficit over the next few months, while the energy sector on the TSX traded its highest since May 2019, ending 0.2% higher.

Industrials, which account for about 30% of the index's market value, gained 0.9% and financials ended 0.6% higher.

After its seven-month streak in September, the Canadian equity index has gained 4.3% so far this month.

It really feels like people got a little too bearish heading into the earnings season and what we're seeing now is a bit of a bearish rally in the market as first glimpses we've had of earnings have been okay, said Gregory Taylor, portfolio manager at Purpose Investments.

This week, big U.S. financial institutions reported strong earnings, setting a positive tone in markets after fears over surging commodity prices, supply chain issues and inflation dogged equities.

The gains on Friday were capped by a 0.9% slide in gold stocks as gold prices fell.