Home Capital, Energy Stocks Lead TSX Higher -- Canadian Commentary

(RTTNews) - Canadian stocks rallied Thursday as the world's most famous investor threw a lifeline to Canada's most beleaguered lender.

Warren Buffett's Berkshire Hathaway will provide a new C$2 billion ($1.5 billion) line of credit to Home Capital Group's (HCG.TO) Home Trust Co.

"Home Capital's strong assets, its ability to originate and underwrite well-performing mortgages, and its leading position in a growing market sector make this a very attractive investment," said Warren Buffett, Berkshire chairman and CEO.

Shares of HCG jumped 25 percent.

On the other hand, Sears Canada (SCC.TO) is seeking creditor protection and will close 59 stores. Shares plunged another 22 percent to C$0.62.

Enbridge (ENB.TO) Line 3 construction will start in August.

SNC-Lavalin Group (SNC.TO) has sold its Montreal head office and nextdoor lot for about $170 million.

All told, the S&P/TSX Composite Index was up 71.37 points, or 0.47 percent, to 15,219.90. Energy stocks trimmed recent losses as crude oil prices steadied above $42 a barrel following their recent collapse.

In economic news, Canadian retail sales rose 0.8% to $48.6 billion in April. Excluding sales at motor vehicle and parts dealers, retail sales climbed 1.5%.