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

Wed Nov 30, 2011 5:31pm 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, analysts' comments)
 By Jon Cook
 TORONTO, Nov 30 (Reuters) - Toronto's main stock index
jumped more than 4 percent on Wednesday in its 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.
 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.
 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]
 The gains came as bullion prices climbed more than 2
percent in response to a falling U.S. dollar as central banks
moved to inject more liquidity into the global financial
system. [ID:nL5E7MU118]
Miner Goldcorp G.TO rose 7.2 percent to C$54.95 and
Barrick Gold ABX.TO was up 5 percent at C$54.05, to lead
gains.
 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.
 Copper rose more than 5 percent to a two-week high, helping
to lift base metal miners more than 8 percent [MET/L]. First
Quantum Minerals FM.TO led the sector's gains, leaping nearly
11 percent to C$20.60.
 "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 19-commodity Thomson Reuters Jefferies CRB index .CRB
was up more than 1 percent on the day, but was still on course
to finish November with a loss after a dismal performance in
the first three weeks of the month.
 "Typically in a rebound as we're now seeing, the sectors
that do the worst (when markets are down) should do the best
coming up," said Pat McHugh, Canadian equity strategist at
Manulife Asset Management. "This should be a good market for
Canada."
 Energy issues, up 4.7 percent, and financial stocks, up
nearly 4 percent, also were big contributors to the surge as
rejuvenated investors pulled their money from the security of
government bonds into riskier plays.
 Suncor Energy SU.TO jumped 5.1 percent to C$30.72 to lead
energy gains. Royal Bank of Canada RY.TO led financials,
gaining 5 percent to C$47.26.
 The global rally started early in the day when China's
central bank moved to ease credit strains by cutting reserve
requirements for its commercial lenders by 50 basis points, the
first such cut in nearly three years. [ID:nL3E7J51YT]
 The Chinese policy shift and the move by central banks,
strong U.S. jobs data and better than expected Canadian
third-quarter economic growth all helped boost market
sentiment. The U.S. figures showed the private sector added
more than 200,000 jobs in November. [ID:nN1E7AS1R7]
[ID:nN1E7AT05Q]
 Canadian equities markets were "internally very oversold"
over the last 10 days as worries about European debt contagion
led to repeated selloffs, said Sid Mokhtari, market technician
and director, institutional equity research, CIBC World
Markets.
 "You just needed a cause and you've got the catalyst this
morning from China and from the coordinated effort of all the
central bankers," Mokhtari said.
 The TSX might have risen higher if not for a technical
glitch in the morning that froze trading of companies whose
symbols started with the letters M to Z. The problem affected
high-volume stocks such as Research In Motion RIM.TO and Sun
Life Financial SLF.TO [ID:nL1E7MU0WH].
 In individual company news, TMX Group X.TO was down 0.7
percent at C$43.43 after the federal competition regulator said
it has "serious concerns" about a C$3.8 billion proposal by the
Maple Group consortium to take over TMX, owner of the Toronto
Stock Exchange.
($1=$1.02 Canadian)
 (Editing by Rob Wilson and Peter Galloway)