CANADA STOCKS-TSX rallies 2 percent on OECD's economic outlook

Wed Jun 24, 2009 5:12pm EDT
 
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* TSX rises 204.21 points to 10,100.93

* Banks and insurers lead latest rally

* TSX still down 1.8 percent on the week (Adds details)

By Frank Pingue

TORONTO, June 24 (Reuters) - Toronto's main stock index shot higher on Wednesday after an OECD report said the global economic outlook has improved for the first time in two years.

The TSX's financial group led the rally with a gain of 2.74 percent as the Organisation for Economic Co-operation and Development said the global downturn is close to a bottom and a recovery is seen next year. [ID:nLN270829]

That helped lift shares of Royal Bank of Canada RY.TO 3.2 percent to C$45.49, while insurer Manulife Financial MFC.TO followed with a gain of 4.2 percent to C$21.09.

The latest TSX rise came after Tuesday's modest gain and Monday's 453-point selloff, which was spurred by a World Bank warning that prospects for the global economy remained "unusually uncertain". [ID:nSGP000012] Monday's drop was the TSX index's biggest point loss since December.

All 10 of the Toronto Stock Exchange's main sectors rallied on Wednesday after the the OECD said that the slowdown in its 30 member countries was near the bottom.   Continued...