Investors cheered news of Republicans winning control of the U.S. Senate and data showing U.S. private jobs growth topped market expectations.
But the price of bullion plunged to a four-year low after the U.S. election results, triggering a sell-off in shares of gold miners.
The benchmark TSX, which has been under pressure in recent weeks because of choppy commodity prices, is up about 7 percent since dropping to an eight-month low last month.
Energy shares have a beating in recent weeks over concerns about ample supply and sluggish demand. The group has shed a quarter of its value since the middle of June.
"At current levels, we see a lot of interest and a lot of value in the whole spectrum of energy names," said Maarten Bloemen, an executive vice president and portfolio manager at Franklin Templeton Investments.
“The way that the stocks have reacted so violently gives us an opportunity to pick some of these quality names,” he said.
“The market is extremely news-sensitive right now. A little bit of news that’s happening in the Middle East can move oil prices, and equities are pretty sensitive to that,” added Bloemen, who helps manage about $2.5 billion in assets.
The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> closed up 157.83 points, or 1.1 percent, at 14,548.26. Eight of the 10 main sectors on the index were higher.
Shares of energy producers rose. Suncor Energy Inc (>> Suncor Energy Inc.) gained 3.4 percent to C$38.52, and Canadian Natural Resources Ltd (>> Canadian Natural Resources Limited) was up 4 percent at C$38.26.
TransCanada Corp (>> TransCanada Corporation) advanced 3 percent on hopes that a Republican-controlled Senate will lead to the approval of the Keystone pipeline.
Financials, the index's most heavily weighted sector, added 1 percent. Royal Bank of Canada (>> Royal Bank of Canada) advanced 1.2 percent to C$81.27, and Toronto Dominion Bank (>> Toronto-Dominion Bank) rose 0.8 percent to C$55.98.
The gold-mining sector dived 4.3 percent, reflecting weakness in the price of the commodity. Barrick Gold Corp (>> Barrick Gold Corp.) lost 4.3 percent to C$12.50.
Magna International Inc (>> Magna International Inc.) reported a 47 percent increase in third-quarter earnings. Shares of the auto parts maker shot up 5.8 percent to C$116.97.
Tim Hortons Inc (>> Tim Hortons Inc.) rose 0.6 percent, to C$92.39, after the coffee chain’s third-quarter profit beat market estimates.
(Editing by James Dalgleish and Steve Orlofsky)
By John Tilak
