Resources bounce-back helps spur big rally

Tue Oct 28, 2008 5:28pm EDT
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By Jennifer Kwan

TORONTO (Reuters) - The Toronto Stock Exchange's main index surged on Tuesday as investors flocked to commodity and financial stocks that were beaten down in Monday's steep fall, encouraged by strong earnings from several companies, including Rogers Communications Inc.

Among heavily weighted stocks that led the market higher were insurer Manulife Financial Corp, which rose 11 percent, oil company EnCana Corp, which was up 8.7 percent, and Barrick Gold, which rallied 12.5 percent on a firmer bullion price.

Shares of Rogers, the country's biggest wireless service provider, rose 10 percent to C$32.00 after it said quarterly profit jumped 84 percent, helped by sales of Apple's iPhone.

TransCanada Corp rose 5.6 percent to C$34.44 after it posted a 20 percent profit rise.

The market got a boost from strong earnings, said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"We've had pretty strong numbers from some bellwether companies like Rogers and TransCanada," he said. "That may give investors some comfort that the earnings situation is not as bleak or as dire as some expected earlier this month."

He added: "This frenetic trading is very largely sentiment driven. It's a couple of good earnings from bellwether companies. A very large part of the sentiment is the feel good factor coming from the U.S. today."

U.S. stocks also charged back on Tuesday with the Dow Jones industrial average up more than 10 percent, and Nasdaq up more than 9 percent, on bargain-hunting and hopes the U.S. Federal Reserve and other central banks will cut rates further.   Continued...

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