August 10, 2015 / 3:31 PM / 2 years ago

CANADA STOCKS-TSX bounces 1 percent as resources, banks rally

3 Min Read

(Updates throughout with analyst comment, market reaction)

* TSX up 142.65 points, or 1 percent, to 14,445.35

* Seven of the TSX's 10 main groups were higher

By Solarina Ho

TORONTO, Aug 10 (Reuters) - Canada's main stock index rebounded on Monday from Friday's losses, rising more than 1 percent as key sectors like financials, energy, and materials saw robust gains.

"It's a relief rally, truthfully," said John Stephenson, President & CEO at Stephenson & Company Capital Management.

"Earnings have been decent, so that's a plus. So you've got a little bit of a pick up in some of the commodities, though not much. You had Shanghai and the Asian markets up overseas."

Four of the five biggest positive drivers on the TSX were banks and insurers. The group, which make up roughly a third of the index, climbed 1.1 percent, with Royal Bank of Canada rising 1.2 percent to C$77.27, and Toronto-Dominion Bank advancing 1.1 percent to C$52.97.

At 11:13 a.m. ET (1513 GMT), the Toronto Stock Exchange's S&P/TSX composite index rose 142.65 points, or 1 percent, to 14,445.35. The index touched a session high of 14,452.97.

Of the index's 10 main groups, seven made gains. Advancing issues outnumbered declining ones on the TSX by 180 to 61, for a 2.95-to-1 ratio on the upside.

The materials group, home to mining companies, jumped 2.6 percent, while energy stocks added 1.9 percent as crude prices bounced higher.

Canadian Natural Resources was up 1.1 percent to C$33.15.

Barrick Gold Corp jumped 6.6 percent to C$9.85, while Goldcorp Inc rallied 4.1 percent to C$18.38.

Gold miners were helped by slightly higher bullion prices, which found support around the $1,100-an-ounce level. Base metal miners were aided by copper prices that rebounded from six-year lows following stronger-than-expected imports from China, despite otherwise disappointing economic data.

Despite Monday's gains, Stephenson expects the index to see more volatility throughout August. "I think the forecast is for more unsettled weather to come," he said. (Reporting by Solarina Ho; Editing by Nick Zieminski)

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