3 Min Read
* 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. [.N]
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] [nSPILL]
"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)