UPDATE 2-Financials, Teck deal boost Toronto stocks

Tue Jul 29, 2008 4:36pm EDT
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(Updates closing numbers, adds details)

* TSX gains as financials climb 2.9 percent

* Fording jumps after Teck Cominco's $14.1 billion bid

* Energy shares retreat along with oil prices

TORONTO, July 29 (Reuters) - The Toronto Stock Exchange's main index rose on Tuesday as Teck Cominco's $14.1 billion offer for Fording Canadian Coal Trust and a gain by financials offset a drop by the energy and gold sectors, which followed commodities lower.

Fording FDG_u.TO jumped 7.8 percent after Teck TCKb.TO said it would buy the company in a cash and stock deal, making it the world's No. 2 exporter of coal used in steel making. Teck shares were up 6 percent.

But the energy sector hampered gains on the Toronto benchmark as oil fell to its lowest level in nearly three months. Among laggards in the oil patch, Canadian Natural Resources (CNQ.TO: Quote) gave up 1.8 percent

A stronger U.S. dollar as well as growing worries over world demand for energy saw crude settle down $2.54 at $122.19 a barrel, after sliding as low as $120.42.

The S&P/TSX composite index .GSPTSE closed up 38.59 points, or 0.29 percent, at 13,342.55 with six of its 10 main sectors higher.   Continued...