* TSX index up 65.96 points at 9,390.79
* Energy sector up 1.9 pct, leads rally (Adds details and comments)
By Frank Pingue
TORONTO, May 1 (Reuters) - Toronto’s main stock index was higher on Friday morning as a rise in prices for oil, a key Canadian commodity, gave a boost to weighty energy shares.
With scattered signs that the global recession may be waning, oil prices have managed to claw back higher on expectations that demand could pick up. [ID:nSP378801]
Shares of Suncor Energy (SU.TO), a key driver behind the index’s rise, were up 3.9 percent at C$31.22, while Petro-Canada PCA.TO shares rose 3 percent to C$38.79.
The rise in shares of Suncor and Petro-Canada came after Goldman Sachs upgraded each company to a “buy” rating from a “sell”. [ID:nBNG274588]
The early rise in the TSX index was also attributed partly to a rebound after Chrysler’s bankruptcy filing on Thursday depressed market sentiment and dragged the index to a lower close after it had shot to its highest level in five months earlier in Thursday’s session.
“We had Chrysler going bankrupt in the States yesterday and now it’s a rebound, I guess, after the bad news and hopefully things can get straightened out a bit,” said Sal Masionis, stockbroker at Brant Securities.
At 9:50 a.m. (1350 GMT), the S&P/TSX composite index .GSPTSE was up 65.96 points, or 0.71 percent, at 9,390.79. Seven of the 10 TSX index sectors were higher, led by a 1.9 percent gain in the energy group.
The TSX has rallied for seven straight weeks and would need to gain at least 225 points in Friday’s session to extend that streak to eight weeks.
$1=$1.19 Canadian Editing by Peter Galloway