CANADA STOCKS-TSX up as financials come back, resources gain

Mon Nov 24, 2008 10:46am EST
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* Royal Bank of Canada warns of trading losses

* Financials reverse early steep losses, most banks up

* Energy group advances as oil rises more than 3 pct

TORONTO, Nov 24 (Reuters) - The Toronto Stock Exchange's main index shot higher in volatile morning dealings on Monday as gains in resource shares due to higher commodity prices were joined by a turnaround in the financial group.

The big energy group edged ahead 4.92 percent supported by the gain in the price of oil. Crude rose as investors considered the prospect of a further OPEC supply cut and as stock markets rallied following the U.S. government rescue of Citigroup. [nN24355026]

Nexen NXY.TO gained 6.5 percent to C$18.01, while Husky Energy (HSE.TO: Quote) rose 5.3 percent to C$31.60.

The materials group gained 5.3 percent as gold prices jumped 3 percent as market players piled in looking for quality investments. [ID:nLO193071] Gold miner Agnico Eagle (AEM.TO: Quote) was among the top net gainers, up 7.7 percent at C$45.

Shortly after 10:30 a.m. (1530 GMT), the S&P/TSX composite index .GSPTSE was up 3.2 percent, or 258.24 points, at 8,413.63. Seven of the index's 10 main sectors advanced.

The financials group was up 2.12 percent, reversing a loss earlier in the day brought on by an earnings warning from the country's biggest bank, Royal Bank of Canada (RY.TO: Quote).

Royal said its fourth-quarter profit, due next week, would be reduced because of held-for-trading securities losses and said it would book a provision for credit losses of about C$620 million. [ID:nN24501121] Royal Bank reversed early losses and gained 3 percent to C$37.57, with most other bank stocks advancing.

($1=$1.24 Canadian) (Reporting by Ka Yan Ng; Editing by Peter Galloway)