CANADA STOCKS-TSX rises as energy shares rally

Wed Jan 21, 2009 10:22am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Key Toronto index firms up after Tuesday's steep fall

* Nagging global economic concerns contain overall gain

* Energy sector leads index higher as oil prices rally (Adds details)

By Frank Pingue

TORONTO, Jan 21 (Reuters) - Toronto's main stock index was higher on Wednesday morning as a boost to energy shares from higher oil prices offset the drag on investor sentiment from worries about the global economy.

Higher prices for oil, a key Canadian export, helped the energy group to lead the index with a 1.96 percent gain and keep the TSX in positive territory after it bounced around the break-even level early in the session.

Some key gainers were Suncor Energy (SU.TO: Quote), which rose 5.3 percent to C$23.29, and EnCana Corp (ECA.TO: Quote), up 0.5 percent at C$52.95.

But after the TSX dropped nearly 4 percent on Tuesday, there was still much trepidation in the market.

"Everyone is still worried about the banks worldwide and to the extent that they can't expand credit because they have deteriorating capital, so people get worried and sell stocks," said Douglas Davis, chief executive officer at Davis-Rea.   Continued...