TSX breaks 14,000 for first time since July 2008

The Toronto Stock Exchange closed above the 14,000 level Wednesday for the first time since July 2008. The S&P/TSX composite index ended the session up 129.8 points, or almost one per cent, to 14,059.2.

The energy sector advanced two per cent as March oil rose 67 cents to settle at $84.99 US a barrel on the New York Mercantile Exchange.

Oil was pushed higher as anti-government demonstrations broke out in Libya and Israel's foreign minister said that Iran is about to send two warships through the Suez Canal on the way to Syria.

The news added to tension in the region and "absolutely moved markets," according to PFGBest oil analyst Phil Flynn. He said traders are worried that spreading unrest in the Middle East will disrupt oil production and shipments in the region.

"The face of the Middle East is changing in pretty dramatic fashion in a very short period of time," he said. "The risk to supply is going up."

The benchmark for European and Asian crude, Brent, rose in London by $2.14 to settle at $103.78 US per barrel on the ICE Futures exchange.

The financial sector was up 0.9 per cent a week before Canadian banks start handing in their quarterly earnings reports.

CIBC gained 73 cents, to $81.30, while Manulife Financial advanced 38 cents, to $19.07.

The tech sector was also supportive with Research In Motion Ltd. up $2.71, to $67.25 after Citigroup upgraded the stock to "buy" from "sell."

The loonie was also higher, up 0.49 of a cent US, to 101.53, despite a report fromStatistics Canada that manufacturing sales were up by 0.4 per cent in December, far less than the expected rise of 2.1 per cent.

The agency said that the aerospace product and parts industry led the declines. Production in the industry fell 16.6 per cent, the largest decrease in percentage terms since September 2009.

S&P/TSX composite index 3-month chart

Sid Mokhtari, market technician at CIBC World Markets said markets in developed countries such Canada have recently benefited from funds coming from the emerging economies.

From CBC News