UPDATE 2-Toronto stocks make broad gain, spurred by US data

Fri Jun 13, 2008 4:37pm EDT
 
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(Updates closing numbers, adds details, quotes)

*TSX snaps five-session losing streak

*Bargain-hunting sets in after tame U.S. inflation data

TORONTO, June 13 (Reuters) - The Toronto Stock Exchange's main index shot higher on Friday, rallying back from a losing streak as optimism over the latest U.S. inflation data prompted bargain-hunting.

The broad-based jump was led by the energy and materials sectors, even though prices for the underlying commodities were soft. Banks gained as inflation woes eased after data showed a tame increase in U.S. core prices.

Big gainers included Potash Corp of Saskatchewan (POT.TO: Quote), which rose C$3.97, or 1.7 percent, to C$232.12, and tech heavyweight Research In Motion RIM.TO, which added C$4.05, or 3.1 percent, to C$136.79.

The S&P/TSX composite index .GSPTSE closed up 175.87 points, or 1.2 percent, at 14,778.46 with all of its 10 main sectors higher.

Despite soft commodity prices, the energy and materials sectors remained a source of strength, gaining 0.9 percent and 1.4 percent respectively.

Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri, said the gains in resources seemed to be a belated reaction to Thursday afternoon's recovery in commodity prices, which Toronto stocks failed to follow.   Continued...