REFILE-CANADA STOCKS-TSX rallies on oil prices, UTS deal

Wed Jul 7, 2010 11:15am EDT
 
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(Refiles to remove extraneous word in fourth paragraph)

* TSX up 106.26 points, nearly 1 pct, at 11,306.43

* Nine of 10 main sectors higher (Updates with details, comments)

By Claire Sibonney

TORONTO, July 7 (Reuters) - Toronto's main stock index rallied for a second day on Wednesday as a rebound in oil prices and a deal by Total SA TOTF.PA to buy UTS Energy Corp UTS.TO boosted prospects for the powerhouse energy sector.

French oil major Total agreed to buy UTS for C$1.5 billion ($1.42 billion) in cash, twice the amount it offered for the Canadian oil sands developer 18 months ago. [ID:nSGE66609U]. The news boosted UTS shares 65 percent to C$3.47.

As well, U.S. crude oil futures bounced higher, sending the energy group up 1.8 percent. Suncor Energy SU.TO, the country's biggest oil company, rose 2.5 percent to C$32.00 while natural gas major EnCana Corp ECA.TO added 1.8 percent to C$32.93. [O/R]

The base-metal mining subsector shot up 4.3 percent while financials edged 0.7 percent higher.

Teck Resources TCKb.TO jumped 4.3 percent to C$33.05 while Bank of Montreal BMO.TO rose 1 percent to C$59.15.   Continued...