CANADA STOCKS-TSX rallies to 3-wk high as oils, banks rise

Mon May 2, 2011 12:16pm EDT
 
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* TSX up 0.56 pct at 14,023.43, touches 3-week high

* Eight of 10 sectors rise, led by energy and financials

* Valeant sags as Teva tops bid for Cephalon

* Election day overshadowed by bin Laden news (Adds details, updates prices)

By Ka Yan Ng

TORONTO, May 2 (Reuters) - Toronto's main stock index hit a three-week high on Monday, influenced by a turnaround in energy prices and buoyed by news that al Qaeda leader Osama bin Laden had been killed.

The heavily weighted energy sector gained more than 1 percent, led by Suncor Energy (SU.TO: Quote), which rose 1.8 percent to C$44.42, while Talisman Energy TLM.TO rose 1.8 percent to C$23.25.

U.S. and Brent crude oil futures turned positive after falling sharply overnight on the news of bin Laden's death in Pakistan, as the risk premium related to geopolitical unrest in the Middle East and North Africa remained intact, analysts said. [O/R]

"Oil turned around. The market is now worried that we may see reprisals for the U.S. killing of bin Laden and thus there's more nervousness in the oil market," said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.   Continued...