CANADA STOCKS-TSX rises with oil price after shaky start

Mon Mar 9, 2009 10:32am EDT
 
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* Energy shares highlight TSX rebound from opening fall

* Nagging global bank worries cap gain (Adds comments and details)

By Frank Pingue

TORONTO, March 9 (Reuters) - Toronto's key stock index was higher on Monday morning after a rocky start as a surge in oil prices helped to boost energy shares and erase the index's 1 percent fall at the open, which was triggered by bank fears.

A turnaround in oil prices helped to bolster the weighty energy sector to a gain of 3 percent and offset weakness in just about every other sector on the index.

Shares of Suncor Energy SU.TO, the main driver behind the index's rally, were up 6.6 percent at C$29.15, while Canadian Natural Resources CNQ.TO rose 4 percent at C$43.45.

That offset much of the drag coming from the big financial index, which was down 0.4 percent as worries about global banks weighed on markets overseas and carried into the North American session at the open.

In Britain, Lloyds Banking Group LLOY.L reached a rescue deal that will give the government a stake of up to 77 percent. [ID:nL9208557].

That rattled financial shares and sent Royal Bank of Canada RY.TO down 0.5 percent to C$29.25, while insurer Manulife Financial MFC.TO dropped 2.4 percent to C$9.42.   Continued...