CANADA STOCKS-Key index rallies, boosted by commodities

Tue Oct 28, 2008 10:19am EDT
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*Materials up 6.8 percent on firmer metals prices

*Energy sector rises 5.8 percent as oil above $64

*Manulife Financial up 7 percent following slump

*Rogers climbs after strong quarterly results

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TORONTO, Oct 28 (Reuters) - The Toronto Stock Exchange's main index climbed nearly 5 percent shortly after the open on Tuesday as commodity prices rose, spurring a recovery in resource shares after Monday's steep drop.

The rally came after a big tumble on Monday, when the index logged its second biggest percent drop ever and closed below 9,000 for first time in nearly four years, losing more than 300 points in the last half hour of trade.

Heavily-weighted stocks that pushed the market higher on Tuesday included insurer Manulife Financial MFC.TO, which rose 7 percent, and oil company EnCana Corp ECA.TO, which was up 6.5 percent.

Given Monday's drop, investors are shopping for beaten down stocks, said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.   Continued...