Commodities boost TSX for third day

Thu Oct 30, 2008 5:34pm EDT
 
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By Jennifer Kwan

TORONTO (Reuters) - The Toronto Stock Exchange's main index jumped more than 3 percent on Thursday, its third straight day of healthy gains, led by commodity issues as market sentiment remained buoyant after Wednesday's rate cut by the U.S. Federal Reserve.

Heavily weighted stocks that led the market higher included EnCana Corp (ECA.TO: Quote), up 5.9 percent at C$62.70, Canadian Natural Resources (CNQ.TO: Quote), up 7.02 percent at C$62.34, and Royal Bank of Canada (RY.TO: Quote), up 4.7 percent at C$47.58,.

"It's a carry through of some of the relief in the market from the rate cut yesterday, suspecting that might help to boost the economy a little bit," said Michael Sprung, president at Sprung & Co. Investment Counsel.

"Therefore the price of oil and commodities might not get as depressed as feared before," he said.

"We might be seeing the market exhibiting a little bit more stability here and perhaps some of the extreme volatility that has been so characteristic of the market in October is beginning to dissipate," Sprung added.

The S&P/TSX composite index .GSPTSE closed up 354.65 points, or 3.73 percent, to 9,856.21, with all of its 10 main groups higher.

Also providing some support was preliminary data that showed U.S. third-quarter gross domestic product shrank less than forecast by economists.

"The GDP number, if they had been disastrous, would have been a different story," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.   Continued...

 
<p>People walk by a Bay Street sign inside the financial district in Toronto October 10, 2008. REUTERS/Mark Blinch</p>