CANADA STOCKS-TSX closes near 8-month high on energy rally

Thu Jun 11, 2009 5:04pm EDT
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* TSX rises 116 points to 10,714.11

* Hits highest level since Oct. 14

* Energy shares climb 1.9 pct in latest rally (Adds details and comments)

By Frank Pingue

TORONTO, June 11 (Reuters) - Toronto's main stock index ended higher on Thursday as its weighty energy sector drew support from another rise in oil prices, helping the TSX reach its highest level in nearly eight months.

Shares of energy companies did much of the session's heavy lifting as oil prices extended their three-day rally, topping $73 a barrel, on hopes for a recovery in world demand. [ID:nSIN191080]

That was enough to boost shares of EnCana Corp (ECA.TO: Quote) 1.8 percent to C$62.99, while Canadian Natural Resources (CNQ.TO: Quote) followed with a 2.3 percent gain to close at C$66.00. The energy sector as a whole climbed 1.9 percent.

The TSX's latest move higher follows a pair of lackluster sessions in which it straddled the break-even level. It is now up 43 percent from the five-year low it reached in March, which some experts say is too much, too soon.

"The market looks stretched, it looks overbought, it looks out of breath, but it just doesn't seem to want to stop," said Rick Hutcheon, president and chief operating officer at RKH Investments.   Continued...