CANADA STOCKS-TSX rallies on commodities recovery, jobs data

Fri May 6, 2011 10:53am EDT
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* TSX rises 136.41 points, or 1 pct, at 13,591.79

* Eight of 10 sectors stronger (Updates with details, commentary)

By Claire Sibonney

TORONTO, May 6 (Reuters) - Toronto's main stock index extended gains on Friday morning as commodity prices recovered after a major selloff and as strong employment numbers in both Canada and the United States lifted sentiment.

The powerhouse energy sector, up 2.5 percent, led the advance, as the price of oil rose in volatile trading after U.S. payrolls posted the largest jobs gain in 11 months, which eased fears about the global economic recovery. [O/R] [ID:nOAT004799]

Suncor Energy (SU.TO: Quote) jumped 2.7 percent to C$40.67, while Canadian Natural Resources (CNQ.TO: Quote) shot up 2.9 percent to C$42.42, despite reporting its first-quarter profit sank. [ID:nN05288931]

"One of the biggest drivers this week has been commodities, obviously. We were seeing quite a bit of speculation come out of the commodity market, that's ultimately good for the economy and stocks," said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.

"We do get the pullback in commodity prices, which have been a problem in terms of inflation expectations, potential monetary tightening and in general puts a ceiling on consumer spending."

At 10:36 a.m. (1436 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 136.41 points, or 1 percent, at 13,591.79. Eight of the 10 main sectors were stronger.   Continued...