TSX rises as investors welcome British Columbia election result

What happened

Canada's main stock index rose 155.98 points, or 0.4%, to 35,944.16 on Monday, led by financial and resource shares, after British Columbia's election raised prospects for oil and gas companies.

Confirmed

Global impact / market context

A new provincial government promising to expand liquefied natural gas production could lift future sales for energy and construction companies operating in British Columbia, which may support their share prices and encourage more capital spending.

Analyst inference

Energy shares gained even as US crude futures settled 1.5% lower but stayed elevated at $101.76 a barrel. Materials rose as gold rebounded from a more than three-month low ahead of a US Federal Reserve policy decision.

Analyst inference

What to watch

1. The opposition Conservative Party won British Columbia's election for the first time in nearly 100 years, promising to ramp up liquefied natural gas production, which means more gas output. Confirmed
2. If oil holds near $101.76 a barrel, investors may keep favoring large energy producers such as Canadian Natural Resources and Suncor Energy, whose cash available could rise with steady prices. Analyst inference
3. The US Federal Reserve policy decision on Wednesday could shift gold and financial shares, changing whether the index keeps the gains made after the British Columbia vote. Analyst inference

Evidence

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