CANADA STOCKS-TSX jumps 1 pct, oils, banks lead rally

Mon Mar 21, 2011 11:03am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * TSX up 173.17 points, or 1.26 percent, at 13,962.80
 * All 10 of the index's main groups higher
 By Solarina Ho
 TORONTO, March 21 (Reuters) - Toronto's main stock index
jumped more than 1 percent on Monday morning with energy
stocks, powered by higher oil prices, leading a broad rally.
 Oil and gas shares, which make up more than a quarter of
the index, were up 1.61 percent. Suncor Energy (SU.TO: Quote) climbed
1.39 percent to C$43.70, while Canadian Natural Resources
(CNQ.TO: Quote) rose 1.67 percent to C$48.61. Talisman Energy TLM.TO
was up 2.79 percent at C$24.30. .
 Oil prices climbed more than $2 a barrel on Monday as
United Nations-mandated airstrikes on Libya and unrest in the
Middle East fueled concerns about oil supply in the region.
 "We were in a bull market until the Middle East situation
arose ... and the Japanese tsunami hit," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
 "But we're getting back on the movement up here. Global
growth continues to point up."
 Buoying sentiment were hopes that the worst of Japan's
nuclear crisis may be over. [ID:nL3E7EK08V]
 At 10:21 a.m. (1421 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 173.17 points, or 1.26
percent, at 13,962.80.
 All 10 of its main groups were in positive territory, with
six of them up more than 1 percent.
 Financial stocks, which make up nearly 30 percent of the
TSX, climbed 1.23 percent. Royal Bank of Canada (RY.TO: Quote) led
with a 1.05 percent rise to C$59.79, followed by
Toronto-Dominion Bank (TD.TO: Quote), which advanced 1.09 percent to
C$83.75. Manulife Financial (MFC.TO: Quote) climbed 2.02 percent to
 "Many of these banks have really recovered and the payout
ratio is really low," Nakamoto said, attributing the banks'
rise to a spillover of sentiment from the United States.
 Last week, major U.S. banks said they plan to boost their
dividend payments after passing stress tests evaluated by the
U.S. Federal Reserve. [ID:nN18249036]
 The Dow Jones industrial average .DJI was up1.74 percent
at 12,032.55 on Monday morning, the Standard & Poor's 500 Index
.SPX was up 1.63 percent at 1,300.04, and the Nasdaq
Composite Index .IXIC was up 1.94 percent at 2,694.84.
 ($1=$0.98 Canadian)
 (Editing by Peter Galloway)