*Energy, materials boost TSX as oil, metals rise
*China’s $586 billion stimulus plan buoys commodities
*Nortel slumps after posts loss, cuts 1,300 jobs
(Adds official closing numbers, details)
TORONTO, Nov 10 (Reuters) - The Toronto Stock Exchange’s main index closed higher on Monday, led by energy and materials issues, as the potential of China’s big stimulus package to boost demand for metals and oil lifted commodity prices.
The heavily weighted energy and materials groups rose 2.7 percent and 3.6 percent, respectively, as oil rose to $62.41 a barrel [ID:nSYD393020], while gold and base metals prices also climbed. For more details, see:[ID:nLA274043]
“The big picture is we’re outperforming the U.S. market,” said Francis Campeau, broker at MF Global Canada, in Montreal. “Our financials are stronger and appetite for commodities is back on the China bailout.”
The S&P/TSX composite index .GSPTSE closed up 92.59 points, or 0.96 percent, at 9,688.80, with four of its 10 main groups higher.
Global stock and commodity markets surged after China unveiled a plan to pump $586 billion into its economy [ID:nSP413174] as world governments took new action to remedy the global financial crisis.
The euphoria faded south of the border as markets focused again on the global economic downturn and investors worried about corporate outlooks.
“The Street is willing to buy back some of the base metals, the energy and gold names,” said Campeau of the Toronto market.
Nortel Networks Corp NT.TO helped to limit the index’s gains, down 26 percent at C$1.11, after North America’s biggest maker of telephone gear reported a big quarterly loss and announced a round of cost-cutting that includes laying off 1,300 more people. [ID:nN10442062]
The information technology sector slumped 2.9 percent with Research in Motion RIM.TO down 3.8 percent at C$55.69.
Elsewhere, WestJet Airlines (WJA.TO) sank 4.9 percent at C$10.13 after it reported a slide in quarterly profit. [ID:nN10393518] ($1=$1.20 Canadian) (Reporting by Jennifer Kwan)