February 17, 2016 / 4:12 PM / in 2 years

CANADA STOCKS-TSX rises in broad rally, Bombardier surges

(Updates prices)

* TSX up 188.58 points, or 1.5 percent, at 12,743.56

* Nine of the TSX’s 10 main groups rise

TORONTO, Feb 17 (Reuters) - Canada’s main stock index rose on Wednesday, helped by higher prices for oil and other commodities and by a surge in shares of Bombardier after the planemaker said Air Canada planned to buy 75 of its CSeries jets.

Bombardier advanced 15.6 percent to C$1.04. The company also said it would slash its workforce by about 7,000 over the next two years, with new hiring focused on the CSeries commercial jet program.

Air Canada declined 9.9 percent to C$7.58. It reported a widening net loss and said its costs would fall this year if the Canadian dollar remains unchanged for 2015 levels.

The financials group gained 1.1 percent, extending a rally after falling sharply earlier in the month.

Brookfield Asset Management Inc advanced 2.7 percent to C$42.35. The infrastructure investor is planning a fresh $6.4 billion bid for Australian port and rail firm Asciano with Qatar’s sovereign fund, two sources told Reuters.

At 10:41 a.m. EST (1541 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 188.58 points, or 1.5 percent, at 12,743.56.

Nine of the index’s 10 main groups were in positive territory, with telecoms down 0.3 percent.

Advancers outnumbered decliners by more than 6-to-1.

The most influential movers on the index included Royal Bank of Canada, which rose 1.2 percent to C$70.25, and Canadian Natural Resources, which advanced 5.9 percent to C$29.50.

The energy group climbed 4 percent, as oil prices rose on hopes that major producing countries would seal an agreement on freezing production following a key ministerial meeting in Iran, even though Tehran signaled a tough line.

U.S. crude prices were up 2.8 percent to $29.84 a barrel, while Brent crude added 3.5 percent to $33.29.

Industrials rose 1.6 percent while the materials group, which includes precious and base metals miners and fertilizer companies, added 1.4 percent.

Gold futures rose 0.3 percent to $1,211 an ounce and copper prices advanced 0.4 percent to $4,573.5 a tonne.

Shares in e-commerce company Shopify gained 7.3 percent to C$30.55 after posting strong quarterly results and 2016 forecasts. (Reporting by Alastair Sharp Editing by W Simon)

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