CANADA STOCKS-TSX surges, boosted by energy stocks, Bombardier

Wed Jun 2, 2010 4:52pm EDT
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 * TSX up 208.70 points, or 1.8 percent, at 11,780.67
 * Energy, banks, materials lead rally
 * Bombardier rises almost 5 percent
 (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, June 2 (Reuters) - Toronto's main stock index
surged on Wednesday after a steep selloff the day before, as
upbeat investors scooped up beaten-down shares including
heavyweight energy and banking issues.
 Powerhouse energy stocks shot up 3.2 percent, as the price
of oil rose, with the sector reversing nearly all losses from
Tuesday. [O/R]
 The biggest gainers included Suncor Energy SU.TO, up 4.3
percent at C$33.17, Canadian Natural Resources CNQ.TO, which
rose 4.4 percent to C$36.68, and EnCana Corp ECA.TO, up 5.3
percent at C$33.90.
 "People are trying to judge the swings in the market," said
John Kinsey, portfolio manager at Caldwell Securities.
 "We seem to have one pretty bad day followed by one pretty
good day ... they're kind of bottom fishing."
 Canadian equities also mirrored gains in U.S. stocks, where
investors were encouraged by data showing pending sales of
previously owned homes increased to a six-month high in April.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 208.70 points, or 1.8 percent, at
11,780.67, with all of its 10 main groups higher.
 Francis Campeau, a broker at MF Global Canada in Montreal,
added that the energy rally could be linked to BP Plc as it
mounted another effort to curb the flow of oil spewing into the
Gulf of Mexico, while the U.S. government launched criminal and
civil investigations into the disaster. [ID:nN02139553]
 "I think it's BP-related," said Campeau. "Canada's
production might be perceived as a bit safer than U.S.
Gulf-based production."
 Financials rose 1.5 percent, with Bank of Nova Scotia
BNS.TO up 2.6 percent at C$50.82. Canada's No. 3 bank, which
reported quarterly profit that was ahead of market expectations
on Tuesday, capped a mixed earnings season for the country's
big lenders. [ID:nN28202192]
 Mining shares, up 4.2 percent, also provided support with
Teck Resources TCKb.TO, the country's largest base-metals
producer, soaring 6.5 percent to C$36.06.
 Other standouts included Bombardier Inc BBDb.TO, which
climbed 4.8 percent to C$4.83. The world's No. 3 civil aircraft
maker beat market expectations despite reporting a lower
quarterly profit. [ID:nSGE6510EC]
 ($1=$1.04 Canadian)
 (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)