CANADA STOCKS-TSX records meaty gain as all sectors rally
* TSX rises 126.33 points to 11,338.72
* All 10 TSX sectors close higher
* U.S. takeover news helps aid rally (Adds details)
By Frank Pingue
TORONTO, Sept 28 (Reuters) - Toronto's main stock index ended up more than 1 percent on Monday as higher commodity prices and a spurt of corporate takeovers out of the United States helped underpin a rally across all its sectors.
Heavily weighted bank shares flexed their muscle in the latest equity rally, with shares of Royal Bank of Canada RY.TO checking out of the session up 1.7 percent at C$58.00, and Toronto-Dominion Bank TD.TO up 2 percent at C$68.88.
The financials index, which accounts for about a third of the TSX, rose 1.97 percent as the group's banks and insurers lured investors in after falling on Friday to its lowest in nearly two weeks.
The S&P/TSX composite index .GSPTSE, which spent the entire session in higher territory, ended the day with a gain of 126.33 points, or 1.13 percent, at 11,338.72. With Monday's rise, the TSX is now up 51 percent from March's five-year low.
"I think it's gone up too fast so I am sort of surprised at today's action and I don't see any good reason for it," said Douglas Davis, chief executive officer at Davis-Rea. "There's just too much money on the sidelines and I guess it won't turn down until everyone's in and then it will really turn down."
The equity rally was largely influenced by similar gains in the United States, where a spurt of corporate takeovers in the technology and healthcare sectors fueled optimism about share values. [ID:nN28526962] [ID:nN2878697]
Davis said he had expected the TSX to encounter pressure in the latest session, following the lead of world stocks that fell to a 12-day low overnight after the weaker-than-expected U.S. housing sales and durable goods orders from Friday.
The energy sector rallied 1.2 percent alongside a rise in oil prices of more than 1 percent on new that Iran was test-firing missiles. [O/R]
Shares of Canadian Natural Resources CNQ.TO rallied 2.5 percent to C$53.47, while Talisman Energy TLM.TO shares ended up 2.5 percent at C$18.66.
Individually, Bombardier Inc BBDb.TO shares rose 6.4 percent to C$4.86 after the company said its Chinese joint venture has a $4 billion contract from the Chinese Ministry of Railways to supply 80 high-speed trains. [ID:nBNG449807]
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