UPDATE 1-Toronto stocks rise, helped by Shell-Duvernay deal

Mon Jul 14, 2008 11:15am EDT
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*Key energy sector gets boost from Shell's Duvernay deal

*Bombardier shares up 4 percent after CSeries launch

*Lift from U.S. Freddie rescue plan fades fast

TORONTO, July 14 (Reuters) - The Toronto Stock Exchange's main index was higher at midmorning on Monday, boosted by strength in its key energy sector on news that Royal Dutch Shell Plc (RDSa.L: Quote) will buy Duvernay Oil Corp DDV.TO for C$5.9 billion ($5.9 billion).

The financials sector, which comprises just over a quarter of the index, gave the benchmark an early boost on the U.S. rescue plan for Fannie Mae FNM.N and Freddie Mac FRE.N mortgage giants, but the sector fell back fast, slipping 0.5 percent.

The U.S. Treasury and Federal Reserve unveiled measures late on Sunday to lend money and buy equity, if necessary, in the Fannie/Freddie companies to restore confidence in financial markets.

"The big news is Fannie Mae and Freddie Mac," said Sal Masionis, stockbroker at Brant Securities, but he added that the fast fade of the plan's impact reflects "huge problems" in the housing market, as well as battered investor sentiment.

"It still is a very confused market," Masionis said.   Continued...