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A pumping oil rig in Norman Wells. Operated by Imperial Oil Ltd. (JOHN LEHMANN/JOHN LEHMANN/THE GLOBE AND MAIL/)

A pumping oil rig in Norman Wells. Operated by Imperial Oil Ltd.

(JOHN LEHMANN/JOHN LEHMANN/THE GLOBE AND MAIL/)

Thank energy stocks for this market rally Add to ...

In these volatile times, you may wonder: how is it that the S&P/TSX composite index is up 200 points, and the S&P 500 is up 1.6 per cent, on a day when Greece’s government is on the brink of collapse and the G20 summit could shake things over the weekend?

Do some digging, and the answer is clear: energy.

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In Canada, the TSX hit a low on October 4, bottoming out at 11,177. The very same day, oil also hit its near-term floor, falling to $75.67 per barrel.

In the month since, oil has rallied almost 25 per cent, and the TSX is up 11 per cent. Of all the sub-indices, energy has risen the most, rallying 19 per cent over the same period. This surge has boosted the TSX because energy stocks comprise 27 per cent of the total index, the second biggest weighting behind financials.

Within energy, the biggest gainers over the past month include Daylight Energy (which was purchased by China’s Sinopec at over a 100 per cent premium), Bankers Petroleum Ltd. and Petrobank Energy and Resources .

Materials have also given the TSX a big boost, and the sub-index is up about 14 per cent over the past month. Much of that rise is owed to First Quantum Minerals , which is up 70 in a month.

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