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The Canada Pavilion at Expo 2020 Dubai. Image Credit: Gulf News Archives

Toronto: Canada’s main stock index rose on Monday, clawing back some of last week’s heavy losses, as oil prices went up and investors welcomed the sale of Shaw Communications’ mobile unit to Quebecor Inc.

The Toronto Stock Exchange’s S&P/TSX composite index ended up 253.15 points, or 1.3 per cent, at 19,183.63. Volumes were lower than normal, with US markets closed for the Juneteenth holiday.

The index was recovering after it posted on Friday its lowest closing level since March 2021. It was down 6.6 per cent last week, its biggest weekly drop since March 2020, on fears that major central banks hiking interest rates to tackle inflation could trigger a recession.

Stocks globally also rallied on Monday.

The risk of inflation becoming entrenched in Canada is growing, say analysts, as surging prices for gas and other highly visible consumer items undercut Bank of Canada efforts to keep price expectations in check.

Shares in Shaw Communications and Rogers Communications rallied on expectations that the sale of Shaw’s mobile unit, Freedom Mobile, to Quebecor Inc will eventually pave the way for regulatory approval of Rogers’ C$20 billion ($15.4 billion) acquisition of Shaw.

Shaw shares jumped 7.8 per cent, while Rogers was up 5.9 per cent. Quebecor climbed 5.8 per cent.

Energy shares rallied 2.5 per cent as oil prices rose. US crude oil futures were up 0.7 per cent at $110.27 a barrel as traders focused on tight supplies, which outweighed concerns about slowing global economic growth.

Heavily weighted financials advanced 1.4 per cent, helped by a gain of 1.6 per cent for Fairfax Financial Holdings.

The company said it will sell its global pet insurance operations to JAB Holding, the private investment company of Germany’s Reimann family, in a $1.4 billion deal.