CANADA STOCKS-TSX rebounds after steep three-day fall

Wed Oct 5, 2011 5:10pm EDT
 
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 *TSX ends up 279.31 points, or 2.5 pct, at 11,457.22
 *All 10 sectors stronger, energy leads
 *RIM jumps 10 pct on takeover speculation
 (Adds details, comments)
By Claire Sibonney and Ashleigh Patterson
TORONTO, Oct 5 (Reuters) - Toronto's main stock index
rebounded strongly on Wednesday after three days of losses,
posting its biggest gain in more than a week as commodities
rallied and U.S. economic data came in better than expected.
 Leading the market higher 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 firmer 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.
  "I think investors are taking some comfort from the last
rebound in the major market indexes yesterday," said Elvis
Picardo, strategist and vice president of research at Global
Securities in Vancouver. Wall Street stocks pushed into
positive territory late on Tuesday after plunging early in the
day but the TSX stayed negative.
 News that European leaders have agreed to examine ways to
shore up troubled euro zone banks helped lift sentiment.
[ID:nL5E7L51RH] [ID:nL3E7L42VF] So did U.S. data on Wednesday
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.
 The TSX had lost more than 500 points since Friday,
plunging to a 23-month low on Tuesday before it cut losses.
 "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.
 Ron Meisels, technical analyst and president at Phases &
Cycles in Montreal, said Tuesday probably marked an important
low on the TSX as no individual stocks hit 52-week highs.
 Research In Motion RIM.TO jumped 10.3 percent on
Wednesday 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/]
 On the downside, Talisman Energy TLM.TO lost 3.3 percent
to C$11.75 after TD Securities cut its price target for the
stock. [ID:nWNAB0914]
($1=$1.05 Canadian)
 (Editing by Peter Galloway)