TSX ends sharply higher on post-holiday bounce

Tue Oct 11, 2011 5:18pm EDT
 
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By Ashleigh Patterson

TORONTO (Reuters) - Canadian stocks ended sharply higher on Tuesday, bolstered by a takeover bid in the heavyweight energy sector and a game of catch-up with global markets as the Toronto index resumed post-holiday trade.

The energy sector rose 3.55 percent, helped by a rally in shares of Daylight Energy DAY.TO after a unit of China Petrochemical Corp (Sinopec) signed a deal to buy the Canadian oil and gas exporter for C$2.2 billion ($2.1 billion) in cash.

Shares of Daylight closed at C$9.64, more than doubling their price from Friday's close, and were the most actively traded on the Toronto Stock Exchange.

Boosted by a rise in oil and spot natural gas prices, shares of Suncor Energy (SU.TO: Quote) also helped to lift the sector. Suncor closed at C$28.85, rising 2.78 percent.

Canadian Natural Resources (CNQ.TO: Quote) closed up 3.3 percent at C$31.21.

Brent November crude rose $1.78, or 1.63 percent, to settle at $110.73 a barrel, marking a fifth straight session of gains, while U.S. crude futures also extended their rally, rising 40 cents, or 0.47 percent, to settle at $85.81 a barrel. <O/R>

"Most of the large cap stocks we have are all interlisted so it is really a simple game of catch-up," said John Kinsey, portfolio manager at Caldwell Securities Ltd. "We went up over 200 points in the first 15 minutes and we've stuck there all day."

The materials sector, which includes gold and base metal miners, closed up 3.64 percent, led by fertilizer producer Potash Corp (POT.TO: Quote), which was the biggest gainer on the index, climbing more than 6 percent to end at C$49.49.   Continued...

 
<p>A Bay Street sign is seen at the financial district in Toronto, October 10, 2008. REUTERS/Mark Blinch</p>