CANADA STOCKS-TSX gains as U.S. data lifts hopes, banks, oil

Mon Oct 5, 2009 4:50pm EDT
 
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 * TSX closes up 1.32 percent at 11,102.62
 * Goldman U.S. bank upgrade also lifts Canadian lenders
 * U.S. services sector grows for first time since Aug 2008
 (Adds details and comments)
 By Ka Yan Ng
 TORONTO, Oct 5 (Reuters) - Toronto's main stock index
finished more than 1 percent higher on Monday as investors
returned to equities following a two-week slide, snapping up
shares of banks and oil and gas companies.
 Bank shares that were unloaded last week helped power the
broadbased rally on the Toronto index, mirroring strong gains
in the United States after Goldman Sachs raised its rating on
large U.S. banks to "attractive" from "neutral."
[ID:nBNG508012]
 Royal Bank of Canada (RY.TO: Quote) led all influential gainers,
rising 1.8 percent to C$56.15. Shares of Bank of Nova Scotia
(BNS.TO: Quote) climbed 2.13 percent to C$47.08, while Bank of
Montreal (BMO.TO: Quote) shares rose 1.3 percent to C$52.50.
 Energy shares, led by EnCana (ECA.TO: Quote), were also among the
big gainers on Monday, buoyed by a price of oil that settled
above $70 a barrel. [O/R] EnCana rose 1.4 percent at C$60.45,
while Canadian Natural Resources (CNQ.TO: Quote) jumped 1.75 percent
to C$69.62.
 Some of the positive sentiment that boosted all 10 of the
index's main sectors stemmed from U.S. data that showed the
services sector, representing about 80 percent of the U.S.
economy, expanded for the first time since August 2008.
[ID:nN05400003]
 "Most stocks that would benefit from stronger economic
growth have moved higher today," said Kate Warne, Canadian
market strategist at Edward Jones in St. Louis, Missouri.
 The S&P/TSX composite index .GSPTSE closed up 144.29
points, or 1.32 percent, at 11,102.62.
 Toronto's main stock index had a shaky start after shedding
4.3 percent and touching its lowest level in a month last week.
That opened the door to some buying by investors who were
optimistic that upcoming data and corporate news will paint a
more upbeat economic picture.
 (Editing by Jeffrey Hodgson)