CANADA STOCKS-TSX powers higher on oils, financials

Mon Nov 24, 2008 6:04pm EST
 
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* Energy group advances as oil rises more than 8 pct

* Royal Bank stock higher despite profit warning

* Citigroup rescue helps lift sentiment (Adds details)

By Ka Yan Ng

TORONTO, Nov 24 (Reuters) - The Toronto Stock Exchange's main index gained 3.5 percent on Monday, with resource issues supported by rising oil prices and the U.S. government's rescue plan for banking giant Citigroup (C.N: Quote) lifting market sentiment, particularly in the financial group.

The energy sector forged ahead 7.1 percent, supported by the oil price gain. Crude rose more than 8 percent as investors considered the prospect of a further OPEC supply cut and as stock markets rallied on the Citigroup news. [ID:nN24537114]

"The news filtering through the system that Citi has received some aid is a great relief to the entire banking community," said Michael Sprung, president at Sprung & Co. Investment Counsel. "There was certainly severe fear of the effects of what would happen if Citi were to go down."

Canadian Natural Resources CNQ.TO gained 8.2 percent to C$45, while Petro-Canada PCA.TO rose 10 percent to C$24.75.

But advances in the materials sector evaporated by the session's end as profit-taking ensued after gold prices hit a five-week high. [ID:nLO3284] The group was one of the main sources of early strength but ended modestly lower, down 0.54 percent.   Continued...