December 14, 2009 / 5:27 PM / 8 years ago

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

3 Min Read

 * 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 Management.
 "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). [ID:nN14170919]
 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)                                       

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