CANADA STOCKS-TSX moves higher as energy prices rebound

Mon May 2, 2011 11:04am EDT
 
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* TSX up 0.6 percent at 14,028.90

* Eight of 10 sectors rise

* Valeant sags as Teva tops bid for Cephalon (Adds details)

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

The heavily weighted energy sector gained more than 1 percent in early dealings, led by Suncor Energy (SU.TO: Quote), which rose 1.9 percent to C$44.44, while Cenovus Energy (CVE.TO: Quote) rose 1.7 percent to C$37.

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.

At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 84.11 points, or 0.6 percent, at 14,028.90. Eight of the index's 10 sectors were higher.

The healthcare group was the most significant decliner, driven lower by Valeant Pharmaceuticals International Inc (VRX.TO: Quote), which fell more than 7 percent to C$46.22.

The drug maker was the top decliner on the TSX after its bid for U.S. specialty drugmaker Cephalon Inc CEPH.O was topped by Teva Pharmaceutical Industries Ltd. [ID:nN02205566] (Reporting by Ka Yan Ng; editing by Rob Wilson)