3 Min Read
* TSX rallies to highest level in nearly 3 weeks
* Energy shares up as oil prices hit 2009 high
* Bank shares rally on JPMorgan profit (Adds details and comments)
By Frank Pingue
TORONTO, Oct 14 (Reuters) - Toronto's main stock index was up about 1 percent on Wednesday morning as a surge in commodity prices lifted Suncor Energy (SU.TO) and other oil and gas players, while upbeat U.S. corporate earnings helped boost sentiment.
Shares of Suncor Energy (SU.TO), the biggest contributor to the early gain, were up 2.9 percent at C$39.83, while shares of fellow oil company Canadian Natural Resources (CNQ.TO) advanced 1.85 percent to C$76.38.
The rally in energy stocks came as the price of oil surged to a 2009 high above $75 a barrel due to optimism about a global economic rebound that will lead to higher energy demand. [O/R]
Heavyweight bank shares also helped power the rise in the TSX as a quarterly profit from JPMorgan Chase & Co (JPM.N), the second-largest U.S. bank, beat expectations. [ID:nN13183184]
Royal Bank of Canada (RY.TO) shares were up 1 percent at C$55.75, while Toronto-Dominion Bank (TD.TO) followed with a gain of 1.25 percent to C$65.45.
At 10:00 a.m. (1400 GMT), the S&P/TSX composite index .GSPTSE was up 100.05 points, or 0.88 percent, at 11,513.59. Earlier, it rallied as high as 11,539.17, its highest level in nearly three weeks.
"You've got firm commodity prices and a perception of the economy recovering in many jurisdictions," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario. "At some point in time the market will have a pause but right now the momentum is significant and it's hard to get in the way of it."
The TSX is up about 54 percent from the five-year low it tumbled to in March.
($1=$1.03 Canadian) (Editing by Peter Galloway)