UPDATE 3-Toronto stocks buoyed by banks, Teck deal

Tue Jul 29, 2008 5:05pm EDT
 
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* 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

By Leah Schnurr

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 in the energy and gold sectors, which followed commodities lower.

Fording FDG_u.TO jumped 7.8 percent after Teck (TCKb.TO: Quote) 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. In the oil patch, Canadian Natural Resources (CNQ.TO: Quote) gave up 1.8 percent

Levente Mady, broker at MF Global Canada in Vancouver, said it was surprising there hasn't been more merger and acquisition activity given that shares of resource companies haven't run up as steeply as commodity prices recently.   Continued...