CANADA STOCKS-TSX rallies strongly after steep three-day fall

Wed Oct 5, 2011 4:29pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX ends up 279.31 points, or 2.5 pct, at 11,457.22
 *All 10 sectors stronger, energy leads
 *RIM surges on takeover speculation
 (Updates to close)
TORONTO, Oct 5 (Reuters) - Toronto's main stock index
rallied on Wednesday after three days of losses, jumping more
than 2 percent as commodity prices rebounded and U.S. economic
data came in stronger than expected.
 Among the index's top gainers were battered energy shares
as U.S. oil futures settled more than 5 percent higher, boosted
by a big drawdown in domestic crude stocks and the positive
economic data. [O/R]
 Suncor Energy SU.TO surged 8.1 percent to C$27.50 and
Canadian Natural Resources CNQ.TO jumped 6.2 percent to
C$30.68.
  All 10 TSX index sectors were higher as the
resource-heavy Canadian market outperformed its U.S.
counterparts, catching up after recent underperformance. [.N]
Among the standouts were financial shares with Bank of Nova
Scotia BNS.TO adding 3.1 percent to C$51.74.
  "We're in an environment where the market is extremely
oversold. My guess is we're still in a declining market, we're
still in a bear market," said John Johnston, chief strategist
at Davis-Rea.
 "I don't know if it's bottomed yet but things have gotten
so negative in the short term that any less bad news, or even
modestly good news, could give us a good lift."
 News that European leaders agreed to examine ways to shore
up troubled euro zone banks helped lift sentiment.
[ID:nL5E7L51RH] [ID:nL3E7L42VF]
 So did U.S. data that showed steady growth in service
sector activity and private employment. [ID:nN1E79407S]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 279.31 points, or 2.5 percent, at
11,457.22.
 Research In Motion RIM.TO jumped 10.3 percent to C$24.49
on takeover speculation a day after the BlackBerry maker's
stock fell below $20 for the first time in almost six years.
[ID:nN1E7940U7]
 Also gaining were gold miners as bullion prices turned
higher after dropping below $1,600 an ounce. Among them,
Goldcorp  G.TO was up 3.1 percent at C$47.38. [GOL/]
($1=$1.05 Canadian)
 (Reporting by Ashleigh Patterson and Claire Sibonney; editing
by Peter Galloway)