CANADA STOCKS-TSX shoots higher after string of selloffs

Tue Jan 13, 2009 11:01am EST
 
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* TSX rebounds after 3 percent skid in Monday's session

* Gains spread across all 10 sectors

* Some investors call latest selloff overdone (Adds details)

By Frank Pingue

TORONTO, Jan 13 (Reuters) - Toronto's main stock index shot higher on Tuesday in a broad rally with investors returning to beaten down equities after a string of selloffs had left the TSX at its lowest level in two weeks.

The heavyweight materials sector, which had spearheaded the market's steep slide in the previous session, rebounded to lead Tuesday's rally. The energy group also recouped recent losses.

Toronto's key index tumbled more than 3 percent in Monday's session to wipe out all of the gains it had made since the start of the year. Last week it was up 5.76 percent for the year.

"Yesterday was a pretty dismal performance and it almost felt like the Christmas spirit and New Year's bravado was over," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"People are looking at the selloff yesterday as overdone and they're coming in to buy a bit here."   Continued...