UPDATE 1-BCE, energy shares boost Toronto stocks

Mon Jun 23, 2008 10:35am EDT
 
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TORONTO, June 23 (Reuters) - Toronto stocks climbed on Monday after the Supreme Court of Canada's decision moved BCE Inc's (BCE.TO: Quote) leveraged buyout closer to completion and buoyant oil prices propped up the resource-heavy market.

By midmorning, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE gained 70.95 points, or 0.5 percent, to 14,651.62, after dropping more than 200 points on Friday.

Six of the TSX index's 10 main groups were higher, led by a 1.8 percent boost from the telecommunications group and a 1.7 percent rise among energy shares.

BCE jumped 8 percent to C$37.37 after the Supreme Court of Canada approved BCE's C$34.8 billion ($34.1 billion) leveraged buyout plan late on Friday, overturning a Quebec Court of Appeal decision which had said the deal didn't take adequate account of the interest of bondholders.

"The market is attempting to get off to a positive start," said Michael Sprung, president at Sprung and Co Investment Counsel. "Certainly the big jump has got to be BCE above everything else."

Energy shares rose on firm oil prices as escalated tensions between Israel and Iran heightened supply concerns.

Among the country's top energy producers, Suncor Energy (SU.TO: Quote) climbed 2.5 percent to C$63.34 and Nexen Inc NXY.TO added 2.3 percent to C$41.25.

Industrial shares got a lift from Bombardier Inc (BBDb.TO: Quote) which said on Monday it had won regional jet contracts totaling about $226 million with two different carriers.   Continued...