UPDATE 2-Resources lead broad rally by Toronto stocks

Wed Aug 20, 2008 11:57am EDT
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* 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.   Continued...