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: 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]
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