CANADA STOCKS-TSX soars more than 2.5 percent after Black Monday rout

Tue Aug 25, 2015 11:55am EDT
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(Updates throughout with details, analyst comments, market reaction)

* TSX up 333.62 points, or 2.56 percent, at 13,386.36

* Nine of the TSX's 10 main groups were up

By Solarina Ho

TORONTO, Aug 25 (Reuters) - Canada's main stock index was headed for its biggest daily gain for the year on Tuesday, jumping more than 2 percent after the Chinese government announced an interest rate cut overnight following Monday's volatile global rout.

The 25-basis-point cut for the one-year benchmark lending rate by the People's Bank of China helped global markets to rebound. Investors fretting over the global impact of slower Chinese growth sparked panic selling around the world on Monday.

"Yesterday there appeared a fair amount of capitulation. It appeared to be more retail-oriented than institutional from what we could see in terms of the volumes," said Irwin Michael, portfolio manager at ABC Funds. He called Tuesday's recovery "a good sign," but noted the market has yet to recoup last week's losses.

"Even though the markets are up ... a lot of investors are still skeptical," Michael added. "Yesterday was a wake-up call that no one should be too complacent on the marketplace."

At 11:22 a.m. EDT (1522 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 333.62 points, or 2.56 percent, to 13,386.36.   Continued...