3 Min Read
* TSX rises 128.08 points, or 1.08 percent, at 12,005.80 * Materials, energy lead market rally * Suncor Energy up nearly 4 percent * All 10 main subgroups rise By John Tilak TORONTO, Nov 19 (Reuters) - Canada's main stock index jumped more than 1 percent on Monday, led by material and energy stocks as commodity prices rallied on hopes that a U.S. budget crisis will be averted. On Sunday, Democrats and Republicans said they could reach a deal to avert the "fiscal cliff," a mix of tax increases and spending cuts starting early in the new year unless there is a deal on Capitol Hill. "If the market senses some agreement will be crafted, it will move," said Irwin Michael, portfolio manager at ABC Funds. "The market was oversold," he said. "If we get any bit of good news, that will be reflected in the stocks." At 1:44 p.m. (1744 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 128.08 points, or 1.08 percent, at 12,005.80. All the 10 main sectors on the index were up. Energy stocks rose 1.67 percent, tracking higher oil prices. Suncor Energy Inc was up 3.65 percent at 32.69 and played the biggest role of any single stock in leading the market higher. "As the energy sector goes, so does the TSX," said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets. He noted that the energy sector had fallen significantly since hitting highs in September. Oil prices rose more than 2 percent as rising violence in the Middle East raised concerns over oil supplies. Goldcorp Inc was up 2.64 percent at C$40.77, and Barrick Gold Corp gained 1.33 percent to C$34.22. That helped the materials group, which includes mining stocks, rise 1.87 percent. Gold prices rose 1 percent as the dollar weakened against a basket of currencies. "There is a disconnect between the common shares of gold and oil and gas companies, compared to the commodities of gold and oil and gas. The market is very much undervalued," Michael said. Shares of Agrium Inc rose 1.84 to C$99.61 after its largest shareholder, Jana Partners, launched a proxy battle and named a slate of nominees to the board of the fertilizer maker. The financial sector, the biggest on the index, was up 0.82 percent. Royal Bank of Canada was up 1.60 percent at C$56.51, and Bank of Nova Scotia climbed 0.74 percent to C$53.40. In other company news, shares of Astral Media Inc were up 3.15 percent after BCE Inc, Canada's biggest telecom provider, said it would seek regulatory approval for a revised C$3 billion plan to take over the company.