TSX rises for fifth day as Filo Mining gains

By Johann M Cherian

(Reuters) – Canada’s benchmark index opened higher for a fifth straight session on Thursday, boosted by gains in Filo Mining following a brokerage’s bullish view on the stock, while easing worries over the banking sector turmoil also helped lift the mood.

At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 55.48 points, or 0.28%, at 19,893.13.

Filo Mining Corp shares rose 4.8% after CIBC started the coverage of the miner with an “outperform” rating and a target price of C$38. The broader materials sector rose 0.1%.

The energy sector also inched up 0.1% in volatile trading, tracking strength in crude oil prices as a drop in U.S. crude stockpiles and a halt in exports from Iraq’s Kurdistan region offset a smaller-than-expected cut to Russian supplies. [O/R]

Among other gainers were financials that added 0.4%, while the real estate sector gained 0.8%.

Canadian equities are set to end the first quarter at 3% higher if gains hold.

“Things are feeling a lot better than they did a few weeks ago, so people are allocating back to equities heading into quarter end,” said Greg Taylor, chief investment officer at Purpose Investments.

“Commodities are doing a little better here so we are seeing a little bit of strength in some of those related stocks.”

Among the top performers on the index are tech, miners and utilities. After a recent spike in investor concerns about a financial meltdown, banks are set to end the quarter down more than 1%.

Among stocks, Atco Ltd rose 1.0% after agreeing to transfer ownership of an unfinished pipeline that has been bogged down in a dispute with the Mexican state power company, two officials told Reuters.

Pet Valu Holdings added 3.0% after TD Securities started covering the pet-related retailer with a “buy” rating and a price target of $45.

(Reporting by Johann M Cherian in Bengaluru; Editing by Anil D’Silva)