CANADA STOCKS-TSX bounces higher as energy, financials rally

Tue Jul 6, 2010 5:34pm EDT
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* TSX rises 0.97 percent to end at 11,200.17

* Energy, financial sectors rise, but gold drags (Adds details)

By Ka Yan Ng

TORONTO, July 6 (Reuters) - Toronto's main stock index ended higher on Tuesday, bouncing back from its lowest close in eight months on Monday, as calmer sentiment prevailed after several weeks of decline, spurring a rally in the key energy and financial groups.

On the leaderboard, Toronto-Dominion Bank (TD.TO: Quote) added 3.28 percent to C$70.18, and Royal Bank of Canada (RY.TO: Quote) gained 2.39 percent to C$52.37. Canadian Natural Resources (CNQ.TO: Quote) climbed 2.35 percent to C$34.81, while Suncor Energy (SU.TO: Quote) rose 1.56 percent to C$31.23.

Investors scooped up bargains on recently sold-off stocks after signs of strength in Europe's banking system and a rally in world equity markets provided relief from recent gloom. Firmer commodity prices also encouraged buying.

The index held onto gains despite U.S. data that showed the pace of expansion in non-manufacturing activity in June was the slowest since February. [ID:nN06102990]

"We saw pretty much across the board the assets that traders like to buy when they're feeling comfortable were all moving up, like crude oil, natural gas, and the Canadian dollar," said Aaron Fennell, senior markets strategist at Lind-Waldock.

"But, at the end of the day, there wasn't any reason to drive the markets higher so they didn't manage to gain any momentum. They just simply stopped the freefall in the stock market today."   Continued...