July 30, 2008 / 8:49 PM / 9 years ago

UPDATE 2-Toronto stocks yanked higher by resources

(Updates closing numbers, adds details)

*TSX index surges more than 2 percent

*Energy sector leads as oil prices advance

*Teck Cominco jumps 13.6 percent after Fording deal

TORONTO, July 30 (Reuters) - The Toronto Stock Exchange's main index jumped more than 2 percent on Wednesday, spurred by resource issues, especially the energy sector, which rallied along with oil prices.

Mining shares rode higher on enthusiasm over Teck Cominco's TCKb.TO $14.1 billion takeover bid for Fording Canadian Coal Trust FDG_u.TO on Tuesday.

Teck surged 13.6 percent as investors applauded the deal, while the subindex of miners gained 4.7 percent on optimism there would be more M&A activity in the sector.

The heavyweight oil and gas group led the way up, buoyed by a more than $4 rise in crude after U.S. government data showed an unexpected drop in gasoline stocks. Suncor Energy (SU.TO) rose 8.3 percent.

The S&P/TSX composite index .GSPTSE closed up 340.66 points, or 2.55 percent, at 13,683.21 with all but one of its 10 main sectors pushing higher.

A move by the U.S. Federal Reserve to boost liquidity in financial markets raised optimism that it will be able to stabilize financial companies coping with credit losses. The Fed said it was prolonging the emergency credit facility for primary dealers to Jan. 30. The facility had been due to expire in mid-September.

In Toronto, the financial sector rose 1.1 percent, with Royal Bank of Canada (RY.TO) up C$1.04, or 2.3 percent, at C$46.62, and Canadian Imperial Bank of Commerce CM.TO adding 79 Canadian cents, or 1.3 percent, to C$61.24.

The energy and materials sectors gained 5.4 percent and 3 percent, respectively. In the oil patch, Canadian Natural Resources (CNQ.TO) was up C$5.28, or 6.8 percent, at C$82.58, and Suncor rose C$4.46 to C$58.42.

Among the miners, Teck jumped C$5.81 to C$48.66, Hudbay Minerals (HBM.TO) was up 76 Canadian cents, or 8.1 percent, at C$10.10. ($1=$1.02 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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