August 18, 2008 / 3:28 PM / 9 years ago

UPDATE 1-Toronto stocks rise on bargain-hunting in resources

(Adds details)

*TSX index gets boost from bargain-hunting

*Oil and gold shares firm after last week’s slide

*Corel slips after buyout plan withdrawn

TORONTO, Aug 18 (Reuters) - The Toronto Stock Exchange’s main index rose on Monday as higher commodity prices encouraged bargain-hunting in resource shares after a big drop on Friday.

The bounce from last week’s six-month low signals further volatility, said Paul Harris, portfolio manager at Avenue Investment Management. “The trend for Canada, at least, is what’s going on with commodities,” he said.

The S&P/TSX composite index .GSPTSE was up 96.28 points, at 0.74 percent, at 13,192.98, with most of its 10 main groups higher, after jumping 100 points at the open. On Friday it tumbled 262 points as oil and metal prices dropped.

The energy sector was up 0.3 percent with EnCana Corp (ECA.TO) up 24 Canadian cents, or 0.3 percent, at C$70.28.

Materials rose 2.1 percent with fertilizer producer Potash Corp (POT.TO) surging C$4.30, or 2.4 percent, to C$184.20, while Kinross Gold (K.TO) rose 2.3 percent to C$16.15.

Oil rose early on Monday oil but backed off below $114 a barrel as supply concerns related to Tropical Storm Fay eased. Gold headed toward $800 an ounce, while other base metals were firm.

Technology shares slipped 0.7 percent.

Corel Corp CRE.TO fell 25 Canadian cents, or 2.6 percent, to C$9.36 after it announced Vector Capital dropped its offer to take the software developer private.

An Ontario appeal court is expected to rule in the Canadian asset-backed commercial paper restructuring case after the market’s close on Monday.

The ruling will either uphold or overturn a lower court’s approval in June of a broad market-restructuring plan covering C$32 billion worth of nonbank sponsored asset-backed commercial paper.

Corporate noteholders had objected the plan, claiming it illegally crushed their rights to sue banks and investment dealers who sold them the paper.

$1=$1.06 Canadian Reporting by Jennifer Kwan; Editing by Peter Galloway

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