CANADA STOCKS-TSX fights back from five-year lows

Tue Mar 3, 2009 3:15pm EST
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* TSX rebounds, up 0.43 percent at 7,720.71

* Energy, materials lead charge higher

* Bank of Canada cuts rates to record low 0.5 pct (Updates to midafternoon, adds quote)

TORONTO, March 3 (Reuters) - Toronto's main stock market index rebounded into positive territory on Tuesday afternoon, struggling higher after touching its lowest level in more than five years, helped up by strength in resource issues.

The heavily weighted energy and materials sectors led the charge, rising 1.7 percent and 2.8 percent, respectively, with Suncor Energy (SU.TO: Quote) up 7 percent at C$25.41 and Goldcorp (G.TO: Quote) ahead 4.5 percent to C$36.39.

At midafternoon, the S&P/TSX composite index .GSPTSE was up 33.20 points, or 0.43 percent, at 7,720.71, with four of its 10 main groups higher. Earlier in the day, the index dropped 2.4 percent, touching its lowest level since October 2003.

"We are groping for a low here," Ron Meisels, technical analyst and president of Phases & Cycles in Montreal, said of the earlier selloff.

"The people who are looking at the market are now hoping and praying that the recent lows will hold."

However, there is a probability the market has further to fall, he said.   Continued...