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 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...