CANADA STOCKS-TSX records meaty gain as all sectors rally

Mon Sep 28, 2009 4:45pm EDT
 
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 * 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: Quote) checking out of the session up 1.7 percent at C$58.00,
and Toronto-Dominion Bank (TD.TO: Quote) 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: Quote) 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: Quote) 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]
 ($1=$1.09 Canadian)