CANADA STOCKS-TSX bounces higher on euro zone hopes

Mon Nov 28, 2011 5:32pm EST
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   * TSX up 178.15 points, or 1.55 pct, at 11,640.21
 * Index's biggest one-day jump since Nov. 3
 * Energy, materials shares lead gains
 * Market rises ahead of euro zone meeting
 (Adds details)  
 TORONTO, Nov 28 (Reuters) - Toronto's main stock index
posted its biggest gain in nearly a month on Monday as
commodity prices rose on hopes that European leaders were
readying a plan to resolve the region's debt crisis.
 Rising oil, gold and copper prices helped the TSX rally
more than 1.5 percent, after it sagged 4 percent last week.
 The heavily weighted materials sector, up 2 percent, was
buoyed by stronger gold and copper prices [GOL/] [MET/L]. Both
hit one-week highs on hopes that a meeting among euro zone
ministers on Tuesday would pave the way for a 440 billion euro
bailout fund, guided by the European Financial Stability
Facility. [ID:nL5E7MR0UA]
 Among the sector's leaders were First Quantum Minerals
FM.TO, up nearly 10 percent at C$18.62, and Barrick Gold
ABX.TO, up 2.4 percent at C$51.18.
 "You're getting some positive comments out of Europe that
they're about to bring that big hammer down and get that
solution in place," said Philip Petursson, managing director of
the portfolio advisory group at Manulife Asset Management.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 178.15 points, or 1.55 percent, at
11,640.21. It was the index's best one-day gain since Nov. 3.
 All 10 of the TSX's main main sectors were higher, led by
oil and gas issues, which climbed 2.7 percent, as U.S. crude
oil spiked to nearly $100 a barrel. [O/R]
 Canadian Natural Resources CNQ.TO led the sector's gains,
jumping 3.7 percent to C$35.20. Suncor Energy SU.TO was also
among the biggest risers, up 2.7 percent to C$28.91.
 "Equities have been so beaten up that any hope of something
positive coming out of (Europe) looks like enough to get
markets moving pretty significantly," said Robert Kavcic, an
economist at BMO Capital Markets.
 Canadian financial issues, which have less European
sovereign debt assets than their global counterparts, responded
to the market optimism with a gain of more than 1 percent.
 Royal Bank of Canada RY.TO led the sector's rise, adding
2.1 percent to C$44.32.
 Additional hope for a euro zone resolution was seen as an
Italian newspaper suggested the International Monetary Fund was
preparing a rescue plan for Italy, although an IMF spokesperson
denied the report. [ID:nL4E7MS1BN]
 While the rosier European outlook was a tonic for equities
markets, which have been pummeled for much of the month, some
skepticism remained.
 "It's just noise," said John Ing, president of Maison
Placements Canada. "The IMF perhaps stepping in so there are
high hopes that we turn the corner, but it's a very long
 Canadian retail issues got a boost from strong U.S. sales
over the Thanksgiving holiday weekend. [ID:nN1E7AR0PG]
 The consumer discretionary sector edged up 0.1 percent.
Canadian Tire Corp CTC.TO was among the top performers,
rising 0.2 percent to C$63.11.
 In individual company news, Cameco Corp CCO.TO rose 5
percent to C$18.23 after the uranium producer backed out of a
bidding war with Rio Tinto RIO.AX for Hathor Exploration
HAT.TO, whose shares fell 7 percent to C$4.69.
 Canmarc REIT CMQ_u.TO soared nearly 20 percent to C$15.80
after a hostile takeover bid by rival Cominar Real Estate
Investment Trust CUF_u.TO that valued the diversified
property manager at C$838 million. [ID:nNL4E7MS21T]
 ($1=$1.03 Canadian)
 (Editing by Rob Wilson)