Canadian Stocks Inch Higher Despite Oil Collapse -- Canadian Commentary

(RTTNews) - Canadian stocks eked out modest gains Tuesday despite continued weakness in the heavily-weighted energy sector.

The S&P/TSX Composite Index rose 60.07 points, or 0.5 percent, to 12002.24, improving from a yesterday's 3-year low.

Feb. WTI oil settled at $28.46/bbl on Nymex, down 96 cents, or 3.3 percent -- the lowest since 2003.

The Energy Index, a gauge of Canadian energy stocks, lost 1.5 percent amid word of a significant merger in the oil patch.

Suncor Energy Inc. and Canadian Oil Sands Ltd. have finally reached a friendly deal after Suncor agreed to raise its takeover offer to nearly US$3 billion.

Suncor lost 2.3 percent.

Financials and mining stocks rebounded, but gold shares plunged 5 percent on diminished appetite for safe haven assets.

Bombardier Inc.(BBD_A.TO) has begun the ramp-up to full CSeries production. Shares were up fractionally.

The company has also been invited to bid for a £2.5 billion London Underground contract.