November 3, 2008 / 3:25 PM / 10 years ago

CANADA STOCKS-Hopes for shallow recession spur small rise

* Nine of 10 sectors rise on renewed market optimism

* Declining oil price hampers energy issues

TORONTO, Nov 3 (Reuters) - The Toronto Stock Exchange’s main index rose moderately in early dealings on Monday with most sectors advancing on hope that the global recession expected next year will be short and shallow, but gains were held in check by declining energy issues.

As nine of the index’s main 10 groups advanced, the heavily-weighted oil and gas sector was the only decliner, down 2 percent.

Oil fell towards $65 a barrel on concerns that demand will continue to be curbed by a slowing economy even as OPEC begins to implement the production cut it agreed to last month. [ID:nN03359725]

Shortly after 10 a.m., the S&P/TSX composite index .GSPTSE was up 19.98 points, or 0.2 percent, at 9,782.74.

“The Canadian markets opened cautiously today,” said Michael Sprung, president at Sprung & Co. Investment Counsel.

“Oil prices are down a little bit today but I would suspect people have some optimism as to the effects that the cutbacks from the Middle East will have that should help to support prices in this area.”

Hopes that a recession will not be as deep as originally viewed may also be lifting spirits, he said. (Reporting by Ka Yan Ng; Editing by Peter Galloway)

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