UPDATE 2-Toronto stocks higher on resources, financials

Thu Feb 7, 2008 2:56pm EST
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(Updates numbers, adds details, quotes)

TORONTO Feb 7 (Reuters) - The Toronto Stock Exchange's main index moved higher on Thursday afternoon, shaking off earlier losses, boosted by gains in the resource and financial sectors.

The S&P/TSX composite index .GSPTSE was up 60.59 points, or 0.47 percent, at 12,927.79 with all but one of its 10 main groups in positive territory. It was off earlier highs after briefly jumping about 100 points.

In choppy action, the index came back from earlier losses, which had been sparked by a warning from Cisco Systems Inc (CSCO.O: Quote) of a slowdown in orders, which underscored worries about the health of the U.S. economy.

Research In Motion RIM.TO, the maker of the BlackBerry, was among the biggest net gainers, adding C$1.76, or 2.1 percent, to C$86.36.

"In a very short-term basis, on a sentiment and momentum basis, the market is oversold, so it wouldn't surprise me to see the market try and bounce here. But any bounce is going to be probably fairly contained -- not going to go too far, not going to last too long," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.

"Maybe we end the day higher, maybe we end the week higher but don't look for much more than that."

Resource shares gained momentum as oil and gold prices moved higher. The heavyweight energy sector rose 0.7 percent, with Suncor Energy (SU.TO: Quote) up C$1.42, or 1.6 percent, at C$93.33, and Petro-Canada PCA.TO gaining 48 Canadian cents, or 1.1 percent, to C$43.60.

The materials sector, home to resource shares, added 0.5 percent, with Teck Cominco TCKb.TO up C$1.17, or 3.5 percent, at C$34.65.   Continued...