3 Min Read
* TSX rises 121.76 points to 11,545.69
* Hits highest level since Dec. 7
* Energy and bank shares power latest rally (Adds details, comments and official numbers)
By Frank Pingue
TORONTO, Dec 14 (Reuters) - Toronto's main stock index rose to a one-week high on Monday as a takeover by Exxon Mobil raised optimism about energy sector acquisitions, while an Abu Dhabi aid package for Dubai helped spark financials.
Suncor Energy (SU.TO), which headlined the overall rally, rose 2.2 percent to C$37.09, while EnCana Corp (ECA.TO) shares followed with a gain of 5.1 percent to C$31.55.
The rally in energy shares came after news that Exxon (XOM.N) will buy XTO Energy Inc XTO.N for about $30 billion in stock, a move that thrusts the U.S. energy giant to the forefront of North America's natural gas industry. [ID:nN14126206]
"If you look at one sector where it really looks like there might be lots of merger and acquisition possibilities it would have to be the energy sector," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
Heavily-weighted Canadian banks followed a rally in global equities overnight which was set off by the news that Abu Dhabi threw its debt-laden neighbor Dubai a $10 billion lifeline. [ID:nLDE5BD0FV]
"That's taken some of the risk concerns off the table and so we're seeing pretty much a rally in financial stocks both here and around the world," said Picardo.
Shares of Bank of Nova Scotia (BNS.TO) rallied 1.3 percent to C$48.13, while Royal Bank of Canada (RY.TO) ended up 0.7 percent at C$55.70.
The S&P/TSX composite index .GSPTSE closed up 121.76 points, or 1.07 percent, at 11,545.69, reclaiming all of the 0.75 percent skid suffered last week.
The close was just four points off the TSX's session high, which had marked its highest level since Dec. 7. (Editing by Jeffrey Hodgson)