TSX Soars As Oil, Metal Prices Rebound

The price has plumbed 11-year lows since falling from above US$41 earlier this month after OPEC said it would maintain its near-maximum production levels for the next six months even as a worldwide supply glut shows no signs of easing.

At the close, Toronto's S&P/TSX composite index was up 48.48 points at 13,082.86, adding to a tiny gain on Monday in the final trading week before the Christmas holiday period.

On the commodity markets, the February gold contract fell $5.70 to US$1,068.40 an ounce and the January contract for natural gas was unchanged at US$1.89.

Financials, the most influential sector in TSX, rallied 0.85percent, with Royal Bank of Canada adding 0.82 percent to 75Canadian dollars.

The metals and mining sector of the TSX was the biggest gainer, rising almost nine per cent, while base metals rose 6.6 per cent.

"If you're an oil investor, a mild winter is the last thing you want because there's already enough on your plate to put downside pressure on oil already", he said. "In a fairly illiquid market, that can lead to these rallies, which aren't necessarily sustainable in the longer term".

The commodity-sensitive Canadian dollar also traded higher on the news despite a report from Statistics Canada showing the economy stalled in October.

The loonie was up 0.04 of a cent at 71.75 cents US.