UPDATE 4-Toronto stocks rise in bargain-hunting rally

Thu Sep 11, 2008 5:13pm EDT
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*TSX rises for a second day after an early decline

*Energy and materials sectors rise on bargain-hunting

*Tech sector rises with Research In Motion

(Adds details, updates numbers)

TORONTO, Sept 11 (Reuters) - The Toronto Stock Exchange's main index rose for a second day on Thursday, overcoming a rocky start on a bargain-hunting rally in hard-hit resource shares.

Among the big gainers, fertilizer producer Potash Corp of Saskatchewan POT.TO was up 5.5 percent at C$162.00, and oil company EnCana ECA.TO was up 3 percent at C$70.82. Overall, the market's energy group ended up 1.4 percent, and the materials sector rose 0.6 percent.

The financial sector pushed up 0.5 percent after falling early in the day on fears for the future of U.S investment bank Lehman Brothers LEH.N. A report later in the day by the Wall Street Journal said Bank of America is in talks to buy Lehman.

Bank of Montreal BMO.TO was up 1 percent at C$49.06, and Royal Bank of Canada RY.TO rose 0.9 percent to C$49.96.

The S&P/TSX composite index .GSPTSE closed up 115.61 points, or 0.93 percent, at 12,612.76 with nine out of its 10 sectors on the upside.

The technology sector also fared well with shares of Research In Motion RIM.TO rising on news of a number of deals to add consumer-related products to its BlackBerry smartphones. RIM was up 4.9 percent at C$117.88. The tech sector rose 2.5 percent.

($1=$1.08 Canadian) (Reporting by Natasha Elkington; Editing by Peter Galloway)