* TSX recovers from year low hit in morning trade
* Big movers in infotech group; RIM and Nortel up 8 pct
* Nine of 10 groups advance
TORONTO, Jan 15 (Reuters) - Toronto’s main stock index pared early losses to rise more than 1 percent on Thursday, boosted a recovery in U.S. stocks and jump in issues including Research in Motion Ltd RIM.TO.
Earlier, the index had hit its lowest point this year as nagging concerns about a drop in oil demand weighed on the resource heavy index while influential banking shares also tumbled.
U.S. stocks also rebounded to trade higher, helped by hopes that Washington would mount action to aid banks, including Citigroup, beset with credit losses.
By 3:05 p.m. (2005 GMT), the S&P/TSX composite index .GSPTSE rose 106.51 points, or 1.23 percent, to 8,794.87. Nine of the index’s 10 main groups advanced, with the exception of utilities.
“I guess one could attribute some of this just to bargain hunters coming in after a few down days here,” said Michael Sprung, president at Sprung & Co. Investment Counsel.
“This morning the market was still suffering from the shock of Nortel and perhaps some of that has worn off as the day progressed.”
Nortel NT.TO rose 8.3 percent to 13 Canadian cents at midafternoon, the day after its shares fell as much as 79 percent on news the telecom equipment maker had filed for bankruptcy protection.
RIM, up 8 percent at C$60.86, was the biggest mover, helping to boost the information technology group.
The materials group gained 3 percent, helped by rising gold issues such as Barrick Gold (ABX.TO), which rose 6.3 percent to C$41.82.
The price of gold should surge above last year’s record levels, rising as high as $1,080 an ounce this year as government fiscal stimulus efforts undermine the greenback and set the stage for a sharp rise in inflation, precious metals consultancy firm GFMS said.
The oil and gas group also headed higher despite a drop in the price of crude. Oil prices slid more than 5 percent amid gloom about the health of the world economy, but shares of Canadian Natural Resources (CNQ.TO) and Suncor Energy (SU.TO) rebounded in the afternoon.
$1=$1.24 Canadian Reporting by Ka Yan Ng; editing by Jeffrey Hodgson