November 4, 2008 / 10:20 PM / 9 years ago

CANADA STOCKS-TSX pushes higher with commodity prices

* TSX closes above 10,000 for first time in two weeks

* Energy issues soar as oil rises above $70

* Talisman Energy rises as profit quadruples (Adds analyst quote, details)

By Jennifer Kwan

TORONTO, Nov 4 (Reuters) - The Toronto Stock Exchange’s main index climbed 4 percent on Tuesday to its highest close in two weeks as resource issues surged with rising commodity prices, and on relief that the uncertainty of the U.S. presidential election would be over later in the day.

Heavily weighted stocks that helped to push the market higher included Canadian Natural Resources (CNQ.TO), up 9 percent at C$62.70, and Barrick Gold (ABX.TO), which got an 10.1 percent boost to close at C$28.97.

Those rises were in line with the broader strength in the key energy and materials sectors, which led the market higher, posting rises of 5.9 percent and 10.2 percent, respectively.

The price of crude settled up $6.62 at $70.53 a barrel on signs Saudi Arabia and other OPEC members had made cuts in crude exports. [ID:nSP182808], while gold and base metal prices rose on a weaker U.S. dollar. [ID:nL4183661]

The rally was due to a “little bit of everything” as investors shopped for beaten-down stocks, said John Kinsey, portfolio manager at Caldwell Securities Ltd.

“They were in an oversold position, badly oversold until last week,” Kinsey said of the key index.

“Last week, we had a number of good days and maybe people are getting a little optimistic about the U.S. election. If people feel that a new brush will work better than the old one then there’s hope we won’t get a world recession and if the U.S. does all right, that will be good for Canada.”

The S&P/TSX composite index .GSPTSE, closed up 395.32 points, or 4.07 percent, at 10.116.58, with eight of its 10 main groups higher.

“(Stocks) are just bouncing off their lows with the U.S. dollar losing some ground today and market optimism all around being a bit better,” said Vincent Delisle, strategist at Scotia Capital, in Montreal.

“What we are seeing right now is pretty much textbook in terms of a bear market rally.”

The key index plunged nearly 17 percent in October, but was up 5 percent last week. The TSX is down more 33 percent from its June peak.

In the oil patch, Talisman Energy TLM.TO rose 8.4 percent to C$12.64 as Canada’s No. 3 independent oil explorer reported its quarterly profit quadrupled. [ID:nN03372777]

Magna International MGa.TO was a major drag on the index, down 3.6 percent at C$39.52 as the auto-parts maker reported a quarterly loss on plunging U.S. auto sales and a softening market in Europe. [ID:nBNG373290]

Also on the downside was Saputo Inc (SAP.TO), down 4 percent at C$24.00, after the dairy products maker reported a higher quarterly profit but missed analyst expectations. [ID:nN03519833]

Market volume was 389.8 million shares worth C$4.54 billion. Advancers outpaced decliners 813 to 679. The blue chip S&P/TSX 60 index .TSE60 closed 23.70 points higher, or 4.04 percent, at 610.63.

U.S. stocks rose in the biggest election day rally ever. [ID:nN04546582] Opinion polls showed Democrat Barack Obama running comfortably ahead of Republican John McCain

The Dow Jones industrial average .DJI climbed 305.45 points, or 3.28 percent, to 9,625.28, while the Nasdaq composite index .IXIC ended up 53.79 points, or 3.12 percent, at 1,780.12. ($1=$1.15 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)

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