UPDATE 2-Toronto stocks rise on bargain-hunting, OPEC

Wed Sep 10, 2008 12:06pm EDT
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*Energy sector rallies after OPEC decision to cut output

*CIBC World Markets cuts TSX 2008 yearend target

*Transat slips after it reports third-quarter loss

(Adds details)

TORONTO, Sept 10 (Reuters) - The Toronto Stock Exchange's main index rose on Wednesday, led by strength in oil shares after a surprise decision by OPEC to cut production and by bargain-hunting after a near 4-percent selloff on Tuesday.

The heavyweight energy sector was up 2.2 percent following the decision by the Organization of the Petroleum Exporting Countries to cut production by half a million barrels a day. Oil prices slipped, however, on slowing demand and as fears over Hurricane Ike receded.

Canadian Natural Resources (CNQ.TO: Quote) jumped 3 percent to C$76.62.

The resource-laden materials group was up 1.3 percent as investors snapped up stocks at bargain prices, despite softness in the price of bullion and as base metals prices fell. Barrick Gold (ABX.TO: Quote) climbed 4.7 percent to C$29.33.

"When you get an oversold situation like yesterday it's bound to rally shortly thereafter," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd., in Calgary, Alberta.   Continued...