CANADA STOCKS-TSX rallies on central banks' EU move

Thu Sep 15, 2011 10:44am EDT
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   * TSX up 72.66 points, or 0.6 pct, at 12,346.04
 * Financials lead rally, energy sector also gains
 * Gold issues drag materials down 1.3 pct
 (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, Sept 15 (Reuters) - Toronto's main stock index
pushed higher on Thursday morning, lifted by a co-ordinated
move by central banks to boost liquidity in the strained
European banking sector.
 The European Central Bank said it would reintroduce
three-month U.S. dollar liquidity tenders in the fourth quarter
alongside other major central banks, including the U.S. Federal
Reserve. [ID:nL5E7KF2LG]
 Recently, euro zone banks have experienced renewed stress
in finding U.S. dollar funding as distrust between banks has
grown due to the sovereign debt crisis.
 Toronto's heavyweight financial sector, which has recently
traded in sympathy with battered European banks, led the rally,
rising 1.8 percent.
 Royal Bank of Canada RY.TO jumped 2.6 percent to C$47.21,
Toronto-Dominion Bank TD.TO rose 1.9 percent to C$74.73 and
Manulife Financial MFC.TO surged 5 percent to C$12.76.
 John Ing, president of Maison Placements Canada, said the
co-ordinated central bank response to the euro zone problems
was buoying markets, but warned that investors were still
taking the positive headlines cautiously.
 "We have seen the cavalry come over the hill numerous
times, with hopes being dashed with the reality that rhetoric
does not match the action," he said.
  At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 72.66 points, or 0.6
percent, at 12,346.04. Eight of the 10 main sectors were
 Energy shares were 1.2 percent higher as oil prices
climbed. Canadian Natural Resources CNQ.TO rose 1.3 percent
to C$34.89 and Cenovus Energy CVE.TO advanced 2.9 percent to
C$33.99. [O/R]
 Materials fell 1.3 percent, dragged down by retreating
precious metal miners as  gold prices slipped below $1,800 an
ounce. [GOL/] [ID:nL5E7KF1A4]
 Goldcorp Inc G.TO dropped 1.7 percent to C$49.50 and
Barrick eased 0.8 percent to C$51.77.
 In individual company news, retailer Dollarama Inc DOL.TO
gained 2.3 percent to C$35.05 after Canada's largest operator
of dollar stores reported a 79 percent rise in second-quarter
profit. [ID:nL3E7KE4G9]
  ($1=$0.99 Canadian)
 (Reporting by Claire Sibonney; editing by Rob Wilson)