CANADA STOCKS-TSX rises on strong oil as focus shifts to Fed

Mon Aug 9, 2010 4:35pm EDT
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*TSX up 63.59 points, or 0.54 percent, to 11,863.56

*Nine of TSX's 10 main sectors higher (Updates to close, adds quote)

By Jennifer Kwan

TORONTO, Aug 9 (Reuters) - Toronto's main stock index rose on Monday as strong oil prices pushed up its energy sector and investors showed optimism that the U.S. Federal Reserve will signal steps to boost economic recovery.

The energy sector was up 0.6 percent as oil prices rose above $81 a barrel, helped in part by expectations the U.S. central bank may signal its readiness to print more money to support the economy. [O/R] Canadian Natural Resources CNQ.TO rose 1 percent to C$36.85.

"Canada is regarded, thanks to its big resource exposure, as a play on global growth and people are expecting there will be quantitative easing (by the Fed) or at least some indication that's the direction they're heading in," said Gavin Graham, global strategist at Excel Funds Management Inc.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the session up 63.59 points, or 0.54 percent, at 11,863.56, with nine of its 10 main sectors higher. The small utilities sector sank 0.2 percent.

Financial shares were boosted by "feel good economic stories" such as figures released on Monday by McDonald's Corp MCD.N [ID:nN09255018], said Bob Gorman, chief portfolio strategist at TD Waterhouse.

"McDonald's same store sales in July were up 7 percent. Macdonald's tends to be looked upon as a bit of a bellwether consumer stock," he said.   Continued...