UPDATE 1-Toronto stocks rally broadly, spearheaded by oils

Thu Oct 9, 2008 10:18am EDT
 
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* Broad-based strength, all sectors up

* Energy leads rally, sector had been down all week

TORONTO Oct 9 (Reuters) - The Toronto Stock Exchange's main index rose sharply in a broad rally on Thursday morning that extended the previous session's gains.

The energy sector led the rally, up nearly 6 percent, as oil was near $89 after a steep slide this week in response to expectations that demand will fall sharply if the global economy slides into recession. [ID:nSP359316]

EnCana was up 4 percent to $54.30, while Nexen was up 5.7 percent at C$17.94.

Shortly after 9:50 a.m. (1350 GMT), the S&P/TSX composite index .GSPTSE was up 309.45 points, or 3.1 percent, at 10,365.76. All 10 sectors posted gains.

The financials group got a boost as a World Economic Forum survey said that Canada has the world's soundest banking system, followed by Sweden, Luxembourg and Australia. [ID:nSYD394240]

Canadian Finance Minister Jim Flaherty said he sees no need to bail out the country's banks, but that he is looking at ways to ease "severe restrictions" in lending. He also called for a second G7 finance ministers meeting. [ID:nN09294805]

Bank of Montreal gained 4.8 percent to C$40.90, while Royal Bank of Canada rose 1.5 percent to C$46.17. ($1=$1.12 Canadian) (Reporting by Ka Yan Ng; Editing by Peter Galloway)