CANADA STOCKS-TSX extends rally as energy gains despite oil price slip

Wed Oct 7, 2015 4:56pm EDT
 
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(Adds strategist comment, updates prices to close)

* TSX ends up 221.09 points, or 1.62 percent, at 13,868.35

* Nine of the TSX's 10 main groups rise

* Bombardier slumps after planemaker says Airbus sale talks ended

By Alastair Sharp

TORONTO, Oct 7 (Reuters) - Resource stocks helped extend a rally in Canada's main stock index on Wednesday despite a drop in crude oil prices, while Bombardier Inc tumbled after the planemaker said CSeries talks with Airbus had ended.

The energy sector rose 3 percent and materials climbed 2.5 percent as investors bid up the beaten-down groups.

"To an important degree it reflects the fact that everybody got so negative," said John Johnston, chief strategy officer at Davis-Rea. "When things are that negative you don't need good news to go up, you just need less bad news."

Cash-strapped Bombardier was the single biggest loser, plunging 13 percent to C$1.54 a day after Reuters reported talks between Montreal-based planemaker and Airbus, which both companies later said had failed.   Continued...