CANADA STOCKS-TSX rallies as energy stocks soar
(Updates throughout with fresh analyst comment, market reaction, details)
* TSX up 238.82 points, or 1.77 percent, to 13,701.53
* Nine of the TSX's 10 main groups were up
By Solarina Ho
TORONTO, Sept 16 (Reuters) - Canada's main stock index rallied on Wednesday, led by a nearly 5 percent surge in energy stocks and broad gains in most other key sectors including the hefty financials group.
Oil and gas names jumped 4.8 percent, moving in step with U.S. crude prices, which rose some 5.6 percent late in the morning on a drawdown in U.S. stockpiles, higher gasoline prices and inflation data that dampened the chances of an interest rate hike by the Federal Reserve this week.
"There's a sense that the Fed won't increase rates tomorrow. We'll have to see if that's the case," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
"If that's the mentality, then the U.S. dollar may come off a bit more and commodities may rally some more. I don't know how sustainable that is, but that seems to be what's going on currently."
The most influential positive movers on the index were Suncor Energy Inc, which bounced 3.8 percent to C$34.68, and Canadian Natural Resources, which jumped 5.3 percent to C$27.72. Continued...