TSX gains 50 points despite new oil low below $54

The Toronto Stock Exchange was up more than 120 points at one point on Monday until gloom in the energy sector set in again.

The S&P/TSX Composite Index reached 14,738 at midday, up around 128 points at its peak before settling back to 14,663.92 at the end of the trading day.

All of the TSX's subindexes were higher, except health care.

The oil sector gained slightly in the morning as the February oil contract edged higher on concerns about disruption to exports from Libya.

But that bit of good news for oil quickly evaporated as the benchmark North American oil contract known as WTI lost another $1, trading just under $54 a barrel.

Oil companies have been sold off heavily in the latter part of 2014, dragging the overall TSX down with them. But at least one market watcher says the worst of the energy sell-off is now behind us.

"There`s going to be a lot of volatility in the world going forward … so I think you need a period of digestion," as the world gets used to cheaper oil. said Brian Belski, chief investment strategist at BMO Capital Markets.

“You need to start seeing more humble forecasts and again, going back to good old fashioned investing, when we get to a point where energy companies aren’t over promising and under delivering; that’s when they will be attractive again."

The loonie was largely unchanged, trading down 0.05 of a cent to 85.99 cents US.