CANADA STOCKS-TSX rises to post first monthly gain since Aug

Tue Mar 31, 2009 4:52pm EDT
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* TSX rises 124 points to 8,720.39

* Banks and insurers power latest rise

* First monthly gain since August 2008 (Adds details, comments and official numbers)

By Frank Pingue

TORONTO, March 31 (Reuters) - Toronto's main stock index shot higher on Tuesday as upbeat news from European financial institutions lifted sentiment, capping off the first monthly gain for the TSX since August.

Financial shares at home and abroad rose after Barclays Bank BARC.L declined to take part in a British government asset-protection plan and Belgian-Dutch Fortis NV FOR.BR outlined its future as a viable insurance group. [ID:nLR449530] and [ID:nLV380962]

Shares of Royal Bank of Canada RY.TO, the key driver of the latest gain, shot 2.7 percent higher to close at C$36.78, while Toronto-Dominion Bank TD.TO rose 3.5 percent to end the session at C$43.46.

"The markets in general and the TSX have been beaten down to such extreme levels due to this unprecedented panic that we saw," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"So this may be the first stage of a rebound that could take indices fairly higher from these levels -- and it's going to be volatile. But the fact that the TSX had its first positive month in seven is certainly a positive sign," Picardo said.   Continued...