August 20, 2008 / 4:43 PM / in 9 years

UPDATE 2-Resources lead broad rally by Toronto stocks

* Energy, miners push TSX higher

* Oil price falls after U.S. data

* Open Text up after quarterly results (Adds details)

TORONTO, Aug 20 (Reuters) - The Toronto Stock Exchange’s main index was sharply higher on Wednesday morning as bargain-hunting investors scooped up energy and mining stocks.

The index’s key energy sector was up 2.3 percent on oil prices, which rose early in the session but then eased after the release of U.S. weekly oil stockpile data.

The data showed crude oil stockpiles rose more than expected, while gasoline inventories dipped more than forecast.

Materials, home to resource stocks, rose 1.1 percent, as some base metals firmed.

The rebound in commodity-related stocks is characteristic of the market volatility in recent weeks, said Michael Sprung, president of Sprung & Co. Investment Counsel.

“After a period of a selloff here you’ve got a lot people coming in and covering shorts and bargain-hunters coming in looking to establish positions,” he said.

The S&P/TSX composite index .GSPTSE was up 162.75 points, or 1.3 percent, at 13,226.60 late on Wednesday morning, with all 10 of its main groups higher. The stock index had risen more than 200 points earlier in the day.

The market also found support in the heavyweight financials sector, which was up 1.2 percent, despite opening lower as investors continued to worry over fallout from the credit crisis.

Royal Bank of Canada (RY.TO) rose 0.3 percent to C$45.18.

In the oil patch, EnCana Corp (ECA.TO) was up 2.4 percent at C$74.00, while Canadian Natural Resources (CNQ.TO) rose 3.8 percent to C$85.40.

In materials, Goldcorp Inc (G.TO) jumped 2 percent to C$34.30, while First Quantum (FM.TO) was up 2.4 percent at C$66.49.

In earnings, Open Text Corp OTC.TO rose 1.9 percent to C$37.06 after reporting stronger results on Tuesday after markets closed. Its quarterly profit beat analyst expectations as higher license and customer support revenue boosted its revenue and profit. See [ID:nN19318574]. ($1=$1.06 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)

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