UPDATE 1-Toronto stocks rise on oil surge, gold strength

Fri Jul 11, 2008 11:14am EDT
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*TSX boosted by spike in oil to record near $147

*Materials sector rises on strength in gold price

*Financials slump as credit crunch worries persist

TORONTO, July 11 (Reuters) - The Toronto Stock Exchange's main index was higher at midmorning on Friday, pulled up by a record high oil price and rising gold prices.

Oil and gas shares rose 1.7 percent as U.S. crude spiked to nearly $147 a barrel amid mounting fears over supplies from Iran, Nigeria and Brazil.

"It's screaming here," said Rob Moss, oil and gas analyst at Acumen Capital Partners, in Calgary, Alberta. "(Oil stocks were) a bit oversold in the last week because of that quick, sudden meltdown in oil prices.

"Of course, the market seems to oversell some of the high fliers, but they quickly come back when things change, so that's what is driving the energy side of the TSX."

The S&P/TSX composite index .GSPTSE was up 73.55 points, or 0.5 percent, at 13,817.43. Overall, seven of the benchmark's 10 main groups were lower.   Continued...