Toronto stocks rally as resources snap back

Wed Sep 10, 2008 6:06pm EDT
 
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By Natasha Elkington

TORONTO (Reuters) - The Toronto Stock Exchange's main index surged on Wednesday in a broad rally led by resource and banking shares, pulling away from bear market territory after a week-long slide.

After falling for five out of six sessions, the index bounce-back was helped by bargain-hunting in oil and other commodity-related stocks.

Among oil gainers Canadian Natural Resources (CNQ.TO: Quote) rose 6.2 percent to C$79.00, and among miners Inmet Mining IMN.TO was up 8.4 percent at C$54.00.

"I think this suddenly looks like an oversold bounce that's being led by some of the biggest market leaders that had the biggest drops in the past six days," said Elvis Picardo, an independent strategist in Vancouver, British Columbia.

"This selloff has been very sharp and bounces like this have to be expected, I don't think the fundamental picture has changed," he said.

Research In Motion RIM.TO was among the biggest gainers after it said it is launching a flip version of its BlackBerry Pearl smartphone. RIM was up 6 percent at C$112.36.

The S&P/TSX composite index .GSPTSE closed up 350.39 points, or 2.88 percent, at 12,497.15 with all of its 10 main sectors rising.

Despite the day's surge, the benchmark index remains down more than 9 percent since September 2, diving on worries over slowing global growth and the impact the slowdown will have on the demand for commodities.   Continued...