TSX rides energy shares to 1.6 percent gain

Wed Apr 8, 2009 4:54pm EDT
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By Frank Pingue

TORONTO (Reuters) - Toronto's main stock index rebounded from an early drop to end higher on Wednesday as rising oil prices gave a boost to energy shares, but nagging economic concerns held the gains in check.

Energy shares had stumbled at the start of the session but turned higher as data from the U.S. Department of Energy showed crude stockpiles rose less than expected, which helped send oil prices back to around $50 a barrel.

Shares of Suncor Energy SU.TO rallied 4.5 percent to close at C$30.50, while Petro-Canada PCA.TO rose 5 percent to C$37.49. The energy group, which did the bulk of the lifting in the latest session, ended up 2.95 percent.

"The key reversal (in the TSX) came from the oil inventory data," said Francis Campeau, a broker at MF Global Canada in Montreal. "That was the catalyst."

The S&P/TSX composite index .GSPTSE rose 144.53 points, or 1.64 percent, to close at 8,969.28. Nine of the TSX's 10 main sectors ended higher, with a 0.06 percent dip by the consumer staples group the only blemish.

The TSX ended at a session high, a big turnaround from the morning when it turned negative.

Another support behind the TSX's turnaround came from the financials, which closed up 1.30 percent after the U.S. Treasury Department outlined the status of its plans to aid some life insurers.

Manulife Financial MFC.TO was up 1.9 percent at C$16.47, while Sun Life Financial SLF.TO jumped 5.2 percent to C$25.00, helping the financials index to a 0.66 percent gain.   Continued...

<p>A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch</p>