UPDATE 3-Toronto stocks rise as resources offset financials

Mon Jul 14, 2008 4:47pm EDT
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(Updates closing numbers, adds details)

* Index climbs with support from resource sectors

* Duvernay jumps after bid from Royal Dutch Shell

* Financials hurt by U.S. bank worries

TORONTO, July 14 (Reuters) - The Toronto Stock Exchange's main index ended slightly higher on Monday as acquisition activity in the energy sector helped offset slumping financials amid nervousness over more casualties from the credit crunch.

Duvernay Oil DDV.TO was the biggest percentage gainer after Royal Dutch Shell RDSa.L agreed to buy the Calgary-based company for about C$5.9 billion ($5.9 billion). Shares of Duvernay soared C$23.56, or 40.3 percent, to C$82.00.

But investor jitters continued to undermine the market, as initial optimism over a proposed U.S. government rescue plan for mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N faded amid renewed fears for the health of the U.S. banking sector.

The S&P/TSX composite index .GSPTSE closed up 32.19 points, or 0.23 percent, at 13,741.29 but just three of its 10 main sectors were higher.

The banks led the way down, sliding 3.2 percent. The sector, which has been beaten up in the wake of the slumping U.S. housing market and resultant credit squeeze, was also hurt by fresh worries in the wake of the collapse of mortgage lender IndyMac Bancorp IMB.N.   Continued...