TSX rebounds after steep three-day fall

Wed Oct 5, 2011 5:11pm EDT
 
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By Claire Sibonney and Ashleigh Patterson

TORONTO (Reuters) - Toronto's main stock index rebounded strongly on Wednesday after three days of losses, posting its biggest gain in more than a week as commodities rallied and U.S. economic data came in better than expected.

Leading the market higher were battered energy shares as U.S. oil futures settled more than 5 percent higher, boosted by a big drawdown in domestic crude stocks and the positive economic data.

Suncor Energy surged 8.1 percent to C$27.50 and Canadian Natural Resources jumped 6.2 percent to C$30.68.

All 10 TSX index sectors were firmer as the resource-heavy Canadian market outperformed its U.S. counterparts, catching up after recent underperformance. Among the standouts were financial shares with Bank of Nova Scotia adding 3.1 percent to C$51.74.

"I think investors are taking some comfort from the last rebound in the major market indexes yesterday," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver. Wall Street stocks pushed into positive territory late on Tuesday after plunging early in the day but the TSX stayed negative.

News that European leaders have agreed to examine ways to shore up troubled euro zone banks helped lift sentiment.

The Toronto Stock Exchange's S&P/TSX composite index closed up 279.31 points, or 2.5 percent, at 11,457.22.

The TSX had lost more than 500 points since Friday, plunging to a 23-month low on Tuesday before it cut losses.   Continued...

 
<p>A general view of the TSX (Toronto Stock Exchange) Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch</p>