CANADA STOCKS-Oil and bank shares drive TSX higher

Mon Oct 26, 2009 10:18am EDT
 
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 * TSX up 119.68 points at 11,501.81
 * Energy shares power early TSX gain
 * Bank shares also help fuel rally
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 26 (Reuters) - Toronto's main stock index was
up more than 1 percent on Monday morning with firm oil prices
helping to push up Canadian Natural Resources (CNQ.TO: Quote) and its
oil company peers.
 Shares of Canadian Natural Resources rose 2 percent to
C$75.92, while Suncor Energy (SU.TO: Quote) shares were up 2 percent
at C$39.17. The two companies were the biggest drivers behind
the index's early gain.
 The rise in the energy sector came as the price of oil
bounced off earlier lows to move back above $81 a barrel.
[O/R]
 Heavyweight bank shares also helped power the TSX's higher
start after Genuity Capital raised its share-price target on
all of Canada's Big Five banks. [RCH/CA]
 Royal Bank of Canada (RY.TO: Quote) rose 0.5 percent to C$56.41,
while Toronto-Dominion Bank (TD.TO: Quote) shares rallied 0.4 percent
to C$65.20.
 The TSX's higher start follows a triple-digit skid in
Friday's session, when lower commodity prices weighed on the
resource-heavy index.
 So far, the TSX has managed to steer clear of the selloff
that some investors called for back in September and that is
luring investors in from the sidelines.
 "People who were very bearish and wanting to buy on
weakness might be second-guessing and saying maybe we should
commit some money," said Irwin Michael, portfolio manager at
ABC Funds.
 "So there are maybe a few investors, institutional-wise,
that would like to commit some money to the marketplace given
that we haven't seen the massive selloff that people were
expecting."
 At 10:05 a.m. (1405 GMT), the S&P/TSX composite index
.GSPTSE was up 119.68 points, or 1.05 percent, at 11,501.81.
 ($1=$1.05 Canadian)
 (Editing by Peter Galloway)