September 18, 2008 / 9:17 PM / in 9 years

UPDATE 3-Toronto stocks up 1.6 pct on boost from financials

* Toronto stock bounce higher in “wild” session

* Financials jump 5.7 percent on renewed optimism (Adds official numbers, details, quotes)

TORONTO, Sept 18 (Reuters) - The Toronto Stock Exchange’s main index rallied nearly 200 points on Thursday after the world’s top central banks injected billions of dollars into markets and on optimism about a possible plan to resolve the U.S. financial crisis.

The financial sector jumped 5.7 percent, boosted initially by central banks joining forces to pump $247 billion into the battered global financial system.

The stocks pared gains around midday, than rallied again near the close on reports that U.S. Treasury Secretary Henry Paulson was considering creating an entity to deal with bad debt in an attempt to ease the U.S. financial crisis.

“Wild and crazy is the short answer,” said Levente Mady, broker at MF Global Canada in Vancouver describing the day’s volatile action.

“I guess the latest news out of the States is that they are looking to establishing a resolution trust type of entity to provide liquidity for all the illiquid stuff,” Mady added.

Leading the way, Bank of Montreal (BMO.TO) was up 9.4 percent at C$49.35 and Bank of Nova Scotia (BNS.TO) was up 8.2 percent at C$47.37.

The S&P/TSX composite index .GSPTSE closed up 186.88 points, or 1.57 percent, at 12,064.57. The main index swung wildly during the day, rising more than 500 points early in the session, then giving up nearly all of that before rebounding.

Coming into the session, the index had fallen nearly 900 points in the early part of the week as the failure of U.S. investment bank Lehman Brothers LEH.N and sharp stock declines among other U.S. financials sparked crisis of confidence on global markets.

All but two of the TSX’s 10 main groups ended in positive territory. Materials slipped nearly 2 percent as gold stocks weakened late in the session, with bullion prices retreating from highs above $900 as renewed investor optimism eroded its safe-haven investment appeal.

Barrick Gold (ABX.TO) was down nearly 8 percent at C$32.50 and Goldcorp (G.TO) fell 6.7 percent at C$30.61.

$1=$1.06 Canadian Reporting by Natasha Elkington; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below