June 5, 2008 / 7:49 PM / 11 years ago

UPDATE 2-Toronto stocks charge ahead amid surging oil

(Updates to late afternoon)

* Index climbs more than 1 percent late in the day

* Resource shares surge as price of oil jumps

TORONTO, June 5 (Reuters) - The Toronto Stock Exchange’s main index pushed more than 1 percent higher on Thursday, led by surging resource issues as the price of oil strengthened.

A softer U.S. dollar helped the price of oil jump more than $5 to above $127 a barrel, which gave a 3.5 percent boost to the heavyweight Toronto energy sector.

Canadian Natural Resources (CNQ.TO) rose C$5.68, or 5.8 percent, to C$103.08, and Canadian Oil Sands Trust COS_u.TO was up C$2.70, or 5.5 percent, at C$51.72.

The materials group, home to resource shares, also lent its support, jumping 3 percent, while Potash Corp of Saskatchewan POT.TO gained C$9.36, or 4.4 percent, to C$221.86.

The S&P/TSX composite index .GSPTSE was up 247.17 points, or 1.68 percent, at 14,937.63 with all but two of its 10 main sectors higher.

Shares of miners and gold producers also helped the materials sector rise, with Barrick Gold (ABX.TO) up C$1.51, or 3.8 percent, at C$41.17, and Teck Cominco TCKb.TO adding C$1.62, or 3.4 percent, to C$49.97

In the oil patch, shares of Imperial Oil (IMO.TO) rose C$1.04, or 1.8 percent, to C$58.65 after the company said a water-use permit allowing construction of its Kearl oil sands project could be reissued as soon as Friday.

On the downside, MDS MDS.TO fell C$1.74, or 9.4 percent, to C$16.86 after the health sciences company said its quarterly profit fell and it lowered its 2008 outlook.

Oil services provider Essential Energy Services Trust ESN_u.TO plunged C$1.02, or 24.5 percent, to C$3.15 after it said it will sell much of its business to reduce debt and also cut its distributions.

Shares of Canadian Western Bank (CWB.TO) rose 80 Canadian cents, or 3.2 percent, to C$25.93 after it reported a gain in profit while higher banking and trust earnings outweighed lower insurance earnings.

$1=$1.02 Canadian Reporting by Leah Schnurr; editing by Rob Wilson

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