CANADA STOCKS-TSX rises on hopes for euro zone rescue

Tue Sep 27, 2011 5:39pm EDT
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   * TSX rises 113.90 points, or 0.97 percent to 11,821.09
 * All 10 main sectors end higher
 * Energy issues lead gains; gold miners weigh
 (Adds details)
 By Trish Nixon
 TORONTO, Sept 27 (Reuters) - Toronto's main stock index
ended higher on Tuesday, building on a rally that began late on
Monday, as optimism grew that euro zone policymakers were
readying decisive action to tackle the region's debt crisis.
 The index surged nearly 3 percent in intraday trade,
hitting a session high of 12,057.95, as European officials were
seen considering plans to increase the size of the bailout fund
and to recapitalize banks. [ID:nL5E7KR1CV]
 But sharp selling heading into the close highlighted
investors' ongoing nervousness.
 "We're kind of on a roller coaster ride here, all the focus
on the sovereign debt problems in Europe," said John Kinsey, a
portfolio manager at Caldwell Securities Ltd.
 "Today is one of those days where people are optimistic
that something may happen, and it looks like maybe they're on
track to get something accomplished ... (but) tomorrow could be
another one of those bad days."
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session up 113.90 points, or 0.97 percent,
at 11,821.09.
 Base-metal miners and energy issues led the gains as
commodities rebounded across the board. Suncor Energy (SU.TO: Quote)
was up 2.6 percent at C$28.38, while First Quantum Minerals
(FM.TO: Quote) surged 9.7 percent to C$16.40. [O/R] [MET/L]
 Financial stocks rose 0.7 percent. Bank of Nova Scotia
(BNS.TO: Quote) gained 1.3 percent to C$52.97 and Manulife Financial
(MFC.TO: Quote) was up 2.1 percent at C$12.25.
 All of the 10 main index groups were higher, but gold
miners weighed on the broader materials sector, falling 1.5
percent, despite strength in the metal itself. [GOL/]
 Kinross Gold (K.TO: Quote) was the heaviest decliner, down 3.05
percent at C$15.28, while Goldcorp (G.TO: Quote) fell 1.3 percent to
 The TSX hit a 14-month low early on Monday before European
leaders said they would beef up the euro zone's rescue fund to
contain the debt crisis, news that have the market a boost of
more than 2 percent.
 But market volatility could remain as traders react to
headlines and attempt to gauge the commitment of governments
and institutions as they work to prevent a Greek default.   
 "The market is an opinion poll and the opinion was that
things were going to get really nasty until they get their act
together," said Barry Schwartz, vice-president and portfolio
manager at Baskin Financial Services.   
 "I think the market is getting a sense that they have
gotten their act together ... We'll see what they come up with
and whether it works."
 In individual company news, BlackBerry maker Research In
Motion RIM.TO rose 3.6 percent to C$23.15 on market
speculation that activist investor Carl Icahn had taken a stake
in the company. [ID:nS1E78Q0NL]
 Shares of Ivanhoe Mines (IVN.TO: Quote) were up 16.13 percent at
C$17.42 after Rio Tinto (RIO.AX: Quote) (RIO.L: Quote) raised its stake in
the company amid tensions over Mongolian plans to renegotiate a
landmark agreement on the development of the big Oyu Tolgoi
copper-gold project. [ID:nS1E78Q0GE]
 (Editing by Jeffrey Hodgson and Rob Wilson)