UPDATE 1-Toronto stocks bounce after Thursday's big drop

Fri Oct 3, 2008 10:15am EDT
 
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*TSX bounce after near 7-percent drop on Thursday

*CIBC rises on move to limit U.S. residential exposure

*Materials get 5 pct boost from top gainer Potash

*Market awaits U.S. House vote on big bailout plan

(Adds details)

TORONTO, Oct 3 (Reuters) - The Toronto Stock Exchange's main index was up sharply on Friday morning after Thursday's near 7-percent drop, rising on strength in commodity shares and ahead of a vote by the U.S. House on the revised $700 billion bailout package for the financial industry [ID:nSP58422] For more links to stories, see: [ID:nCRISIS].

At 9:45 a.m., the S&P/TSX composite index .GSPTSE was up 306.13 points, or 2.81 percent, at 11,206.67, with all but one of its 10 main groups higher. The small healthcare group sank 0.5 percent.

The heavyweight energy sector rose 2.7 percent with EnCana Corp ECA.TO up 3 percent at C$61.30, while Canadian Natural Resources CNQ.TO rose 3.5 percent to C$67.37.

Materials climbed 5.1 percent with fertilizer producers Potash Corp of Saskatchewan POT.TO up 6.5 percent at C$107.56, and Agrium Inc AGU.TO up 5.4 percent to C$47.46. Both stocks plunged on Thursday after Merrill Lynch downgraded them because of uncertainty about earnings in the fertilizer sector.

The market's financial-services sector rose 2.3 percent with Canadian Imperial Bank of Commerce CM.TO up 4.2 percent to C$60.25 after it said it will limit its U.S. residential exposure through a $1.050 billion agreement with a fund arranged by Cerberus Capital Management. [ID:nN03323380] ($1=$1.08 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)