UPDATE 2-Resources, financials boost Toronto stocks

Wed Aug 27, 2008 4:49pm EDT
 
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* TSX jumps more than 1 percent in broad rally

* Resource shares get boost from commodity prices

* Banks rise in heart of their reporting season

* CIBC up 5 percent after lower than expected charges (Updates closing numbers, adds detail)

TORONTO, Aug 27 (Reuters) - The Toronto Stock Exchange's main index jumped more than 200 points on Wednesday, as the key resource and financial sectors were lifted by commodity prices and a rally by Canadian Imperial Bank of Commerce CM.TO after it reported lower than expected charges for the quarter.

Oil jumped to above $118 a barrel as Tropical Storm Gustav was expected to intensify into a hurricane that could threaten U.S. oil and natural gas production in the Gulf of Mexico.

The rise marked the third day of gains for oil prices and boosted Bay Street's heavyweight energy sector 1.9 percent. Among gainers, Canadian Natural Resources CNQ.TO was up 3.2 percent at C$90.36.

Financials, the second biggest group, also drove the index higher after CIBC logged lower than expected charges on structured-credit investments and managed a small profit, sending its shares up 5.3 percent to C$60.10. For details, see: [ID:nN27438345].

The S&P/TSX composite index .GSPTSE closed up 231.58 points, or 1.74 percent, at 13,530.65 with all but one of its 10 main sectors in an upswing.

All the major banks rose as the heavy hitters release their quarterly results this week, culminating in reports from three institutions on Thursday, including Royal Bank of Canada RY.TO, which rose 2.7 percent to C$45.30. The group gained 2.5 percent.

Gains in gold, copper and other metals strengthened the resource-laden materials sector, with Agnico-Eagle Mines AEM.TO rising 2.2 percent to C$60.42, while the group overall put on 1.8 percent. ($1=$1.05 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)