3 Min Read
* TSX gains 1.23 percent to 11,251.74
* Materials, oil and gas lead way higher
* Greece bailout speculation spurs rebound (Adds details)
By Ka Yan Ng
TORONTO, Feb 9 (Reuters) - Toronto's main stock index gained more than 1 percent on Tuesday, supported by firm oil and gold prices and speculation that a rescue plan was in the works for Greece's debt problems.
Global stock markets were boosted by speculation that a special European Union summit, scheduled for later in the week, would introduce initiatives to help fix Greece's debt woes. [ID:nSGE61801C] [MKTS/GLOB]
The improved economic outlook for the troubled euro zone buoyed global markets, increasing risk appetite and feeding into higher commodity prices. Gold rose above $1,070 an ounce and oil topped $73 a barrel, which pulled up Toronto's leading materials and energy sectors. [GOL/] [O/R]
Top heavyweight gainers included Suncor Energy SU.TO, up 2.9 percent at C$32.20, while Goldcorp (G.TO) gained 3.7 percent to C$38.24.
At 10:30 a.m. (1530 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 136.44 points, or 1.23 percent, at 11,251.74. All 10 of the index's main groups were higher, rebounding from the 1 percent fall in the previous session.
"The hint that there might be a bailout over in the European Community for Greece seems to have turned the market a little bit here," said Michael Sprung, president of Sprung & Co. Investment Counsel.
"People perceive the world might not be coming apart at the seams just yet."
Teck Resources TCKb.TO, the country's largest base metals miner, was also a major influence, rising 4.7 percent to C$36.12 after it said it returned to profit in the fourth quarter. [ID:nN08210504]
Fertilizer producer Agrium (AGU.TO) rose 4.7 percent to C$64.92 after it reported a weaker fourth-quarter profit, but said it expected increasing volume shipments to boost 2010 results. [ID:nN09157157]
On the downside, RioCan REIT REI_u.TO fell 4.4 percent to a two-month low of C$18.25 after the retail property developer's results missed analyst forecasts. [ID:nN09103382]
$1=$1.07 Canadian Editing by Rob Wilson