CANADA STOCKS-TSX has biggest jump in more than 2 years

Wed Nov 30, 2011 4:45pm EST
 
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   * TSX up 471.61 pts, or 4 pct, at 12,204.11
 * TSX's biggest single-day gain since March 23, 2009
 * Materials shares up 6 pct, energy up more than 4 pct
 * Central banks move to ease market liquidity
 * China cuts bank reserves in policy shift
 (Adds details, analyst comments)
 By Jon Cook
 TORONTO, Nov 30 (Reuters) - Canadian stocks jumped more
than 4 percent on Wednesday in their biggest single-day gain in
more than two years, pushed up by an agreement by global
central banks to tackle the euro-zone debt crisis and by a move
by China to ease credit.
 Commodity prices, particularly for oil, gold and base
metals, rose on renewed investor optimism for the global
economy, lifting the TSX's heavily weighted materials sector 6
percent. [ID:nN1E7AT0GX]
 Miner Goldcorp (G.TO: Quote) rose 5.4 percent to C$53.98 and
Barrick Gold (ABX.TO: Quote) was up 2.8 percent at C$52.90, to lead
gains.
 Energy issues, up 4.7 percent, and financial stocks, up
nearly 4 percent, also were big contributors to the rally as
rejuvenated investors pulled their money from the security of
government bonds into riskier plays.
 Suncor Energy (SU.TO: Quote) jumped 5.1 percent to C$30.72 to lead
energy gains. Royal Bank of Canada (RY.TO: Quote) led financials,
gaining 5 percent to C$47.26.
 The move by the TSX index mirrored hefty gains on other
global markets as central banks from the world's leading
economies, including the Bank of Canada, the U.S. Federal
Reserve and the European Central Bank, agreed to lower the cost
of dollar swap lines by 50 basis points, as well other
measures. [ID:nN9E7LI02P]
 "Santa has come early and he happens to look a lot like
(Fed Chairman) Ben Bernanke, right down to the beard, and in
his bag he has lots and lots of U.S. dollars available to
exchange for euros in unlimited amounts," said Gavin Graham,
president of Graham Investment Strategy.
 "All the risk assets, whether it's gold or copper or oil or
the Canadian dollar, are all shooting up and it's likely that
we'll see a continuation of that (for the rest of the year),"
Graham said.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 471.61 points, or 4 percent, at 12,204.11.
It was the TSX's biggest single-day gain since March 23, 2009
when the market finished up more than 5 percent.
 ($1=$1.02 Canadian)
 (Editing by Rob Wilson; editing by Peter Galloway)