June 13, 2008 / 8:41 PM / 9 years ago

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

(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), 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.

“Today’s bounce back is almost a delayed response to yesterday’s gains (in commodities),” she said.

In the oil patch, Canadian Oil Sands Trust COS_u.TO rose C$1.39, or 2.7 percent, to C$52.74. Among miners, Inmet Mining IMN.TO was up C$1.14, or 1.7 percent, at C$69.55.

The financial sector rose 1.6 percent. National Bank of Canada (NA.TO) gained C$1.47, or 2.9 percent, to C$52.78, and Toronto-Dominion Bank (TD.TO) was up 86 Canadian cents, or 1.3 percent, at C$67.85.

On the downside, First Quantum Minerals (FM.TO) fell C$2.06, or 2.8 percent, to C$72.54 after shareholders of Scandinavian Minerals SGL.TO approved First Quantum’s takeover bid. ($1=$1.03 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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