CANADA STOCKS-TSX rises as oils get boost from Exxon deal

Mon Dec 14, 2009 12:24pm EST
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 * TSX up 0.97 percent at 11,534.52
 * Energy sector boosted by $30 billion Exxon deal
 * Fertilizer shares fall after Terra rejects new CF offer
 * Dubai receives $10 billion bailout from Abu Dhabi
 (Adds details, comments)
 By Irene Kuan
 TORONTO, Dec 14 (Reuters) - Toronto's main stock index
jumped 1 percent on Monday as Exxon Mobil Corp's XOM.N $30
billion deal to buy XTO Energy Inc XTO.N spurred hopes for
more acquisition moves in the energy sector.
 Shares of EnCana Corp ECA.TO, up 5.76 percent at C$31.76,
and Suncor Energy Inc SU.TO, up 1.85 percent at C$36.96,
played the biggest role in leading the index higher.
 Exxon's deal raised expectations of a wave of consolidation
in the energy sector as cash-rich companies move to snap up
smaller players with attractive assets. [ID:nN14126206]
 "That put an undertone to the (Canadian) market," said Paul
Gardner, partner and portfolio manager at Avenue Investment
 "It makes a lot of sense. Exxon's got the capital, natural
gas is near historic lows and this is probably a perfect
opportunity to deploy capital,"
 At 11:50 a.m. (1650 GMT), the S&P/TSX composite index
.GSPTSE was up 110.59 points, or 0.97 percent, at 11,534.52.
 Other top gainers on the index were Canadian Natural
Resources CNQ.TO, up 2.43 percent at C$70.44, and Talisman
Energy TLM.TO, up 3.2 percent at C$18.68.
 The Exxon deal added impetus to recent economic data that
has spurred optimism in the market.
 "I get the general sense people have sort of bought into
the fact that economic conditions have more than stabilized and
we're slowly moving up," said Ian Nakamoto, director of
research at MacDougall, MacDougall & MacTier.
 Markets were also helped by news that Abu Dhabi threw its
debt-laden neighbor Dubai a surprise $10 billion lifeline on
Monday to head off a bond default. [ID:nLDE5BD0FV]
 Weighing on the market were shares of fertilizer makers,
which fell after Terra Industries TRA.N rejected a sweetened
takeover offer from rival CF Industries CF.N.
 Potash Corp POT.TO was the biggest drag on the index,
down 2.43 percent to C$122.93, while rival Agrium AGU.TO fell
1.31 percent at C$65.53
 ($1=$1.06 Canadian)
 (Reporting by Irene Kuan; Editing by Peter Galloway)