CANADA STOCKS-TSX lifted by Cenovus, energy stocks, in broad rally

Thu Oct 23, 2014 11:36am EDT
 
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* TSX up 150.84 points, or 1.1 percent, at 14,462.91
    * Nine of the 10 main index groups rise
    * Energy sector up 2.4 percent, materials down 0.5 percent

    By Solarina Ho
    TORONTO, Oct 23 (Reuters) - Canada's main stock index was
sharply higher on Thursday, propelled by a strong rebound in the
energy sector, as it regained some ground after a steep drop the
previous session that was spurred partly by a gunman's incursion
into the Parliament buildings in Ottawa and the deadly shooting
of a soldier.
    Energy stocks, which sold off on tumbling oil prices on
Wednesday, were up 2.4 percent, and the index's top four
heavyweight gainers were all oil and gas shares. Oil prices rose
on stronger economic data from Europe and China.
    Cenovus Energy Inc, Canada's No. 2 independent oil
producer, jumped 6.1 percent to C$27.86 after its quarterly
results beat expectations. Canadian Natural Resources 
rose 2.7 percent to C$39.51.
    "The energy sector fell during the downturn, pressured by
oil. Gold did well because it was the risk aversion play. You
see it reversed as the markets rebounded back a little bit,"
said Sadiq Adatia, chief investment officer at Sun Life Global
Investments.
    "That's what you're seeing in the marketplace. As long as
the risk appetite is there, oil is probably going to be okay."
    The index's industrial sector, home to Canadian National
Railway Co, climbed 1.8 percent. CN, Canada's biggest
railroad, was up 1.7 percent at C$76.49. Canadian Pacific Ltd
, the No. 2 railway, was up 1.8 percent at $225.24.
    At 10:59 a.m. (1559 GMT), the Toronto Stock Exchange's
benchmark S&P/TSX composite index was up 150.84
points, or 1.1 percent at 14,462.91.
    The resource-heavy materials sector was the lone decliner
among the index's 10 main groups. It dropped 0.5 percent on
retreating gold-mining stocks.
    The TSX fell 1.6 percent on Wednesday, hit by falling crude
prices and the events in Ottawa.
    Adatia said the slew of negative news on Wednesday provided
an opening for those looking to sell, and that moves on negative
news are likely be greater than reactions to positive news in
the current market environment. Market fundamentals, however,
are still positive, he said, with the economy generally headed
in the right direction.
    ($1=$1.12 Canadian)

 (Reporting by Solarina Ho; Editing by Peter Galloway)