3 Min Read
* TSX rises for third session in a row
* Energy, materials lead index higher
* Imperial Oil up 5 percent after quarterly results
* Barrick up 7.1 percent despite results (Adds official closing figures, quotes, details)
TORONTO, Oct 30 (Reuters) - The Toronto Stock Exchange's main index jumped more than 3 percent on Thursday, its third straight day of healthy gains, with commodity issues leading the way as market sentiment remained buoyant after Wednesday's rate cut by the U.S. Federal Reserve.
Heavily weighted stocks that led the market higher included Royal Bank of Canada (RY.TO), up 4.7 percent at C$47.58, EnCana Corp (ECA.TO), up 5.9 percent at C$62.70, and Canadian Natural Resources (CNQ.TO), higher by 7.02 percent at C$62.34.
"It's a carry through of some of the relief in the market from the rate cut yesterday, suspecting that might help to boost the economy a little bit," said Michael Sprung, president at Sprung & Co. Investment Counsel.
"Therefore the price of oil and commodities might not get as depressed as feared before," he said.
"We might be seeing the market exhibiting a little bit more stability here and perhaps some of the extreme volatility that has been so characteristic of the market in October is beginning to dissipate," Sprung added.
The S&P/TSX composite index .GSPTSE closed up 354.65 points, or 3.73 percent, to 9,856.21, with all of its 10 main groups higher.
Also providing some support was preliminary data that showed U.S. third-quarter gross domestic product shrank less than forecast by economists. [ID:nN30534111]
The data comes a day after the U.S. central bank cut rates by 50 basis points to 1 percent in a bid to stimulate the economy.
The composite's rise builds on two straight days of gains as investors have started to move back into risker assets, which could be a sign that the market may be ready to climb even higher after the extreme volatility of recent weeks, analysts say.
The TSX is down 16 percent so far this month.
The materials sector was up 5.7 percent on Thursday with top gold producer Barrick Gold (ABX.TO) up 7.1 percent at C$29.88. Earlier Barrick reported a drop in third-quarter profit. [ID:nN30532636]
Energy issues rose 5 percent with Imperial Oil (IMO.TO) up 5 percent at C$42.00 after the country's largest oil producer and refiner reported a surge in quarterly profit. [ID:nN29498689]
Despite the cheer on the TSX, demand fears pushed the price of gold [ID:nN30584211] and oil down [ID:nSP393073]
The heavily weighted financial services sector rose 2.5 percent with Great-West Lifeco (GWO.TO) up 0.23 percent at C$25.75. The big insurer reported a lower quarterly profit in part on charges related to impaired assets. [ID:nN30537370] ($1=$1.21 Canadian) (Reporting by Jennifer Kwan; editing by Rob Wilson)