TSX Rallies As Crude Approaches $50 -- Canadian Commentary

(RTTNews) - Canadian stocks rallied along with crude oil prices Monday, as Russia and Saudi Arabia agreed to extend their supply quota plan and do "whatever it takes" to re-balance oil markets.

The TSX Composite Index was up 91 points, or 0.59 percent, to 15,629.47.

Energy stocks jumped 1%. June WTI oil was up $1.01, or 2.1%, to end at $48.85/bbl, the highest in two weeks.

Bank of Canada Governor Stephen Poloz said Home Capital Group Inc.'s troubles are contained to the embattled mortgage lender. Speaking to the Global and Mail, Mr. Poloz downplayed concerns that Home Capital's subprime troubles will spread to major banks.

The BoC's top man would not rule out the possibility of providing an emergency loan to Home Capital, but Home Capital's CEO says it will not need any lifeline from the central bank. Shares were up 1.7 percent.

Also in the financial sector, PrivateBancorp shareholders approved a $4.9 billion takeover offer from CIBC (CM.TO) on Friday. CIBC was up fractionally.

Fortis Inc (FTS.TO) will buy Teck Resources Ltd's (TECKb.TO) majority stake in the Waneta dam in British Columbia as well as any related transmission assets for $1.2 billion in cash. Fortis was up slightly.

Eldorado Gold Corp. (EGO, EGO.TO) has entered into a definitive agreement to acquire shares of Integra Gold Corp. (ICG.V) that it does not currently own, C$590 million. Eldorado shares dropped 8 percent.

American Hotel Income Properties REIT LP(HOT_UN.TO) has seen Minaz Abji elected to its Board. Shares were up fractionally.

BHP's Chile copper mine has earned bids from Canadian miners including Teck, Lundin and HudBay, Reuters reports.