September 11, 2008 / 5:02 PM / 10 years ago

UPDATE 3-Toronto stocks swing higher as bargains sought

*TSX climbs into positive territory after big early loss

*Bargain-hunting in resources leads the way up

*Financials remain pressured by Lehman worries (Updates numbers, adds details)

TORONTO, Sept 11 (Reuters) - The Toronto Stock Exchange’s main index edged higher on Thursday, recovering from a nearly 3 percent drop earlier in the day, on gains in resource shares, which have been stung by a recent steep selloff.

Investors were lured back to the heavyweight energy and materials sectors by cheap prices, analysts said.

Potash Corp of Saskatchewan POT.TO rose 3.8 percent to C$159.37, while in the oil sector, Canadian Natural Resources (CNQ.TO) was up 2.9 percent at C$81.25. The energy and materials sectors gained 0.5 percent and 0.8 percent, respectively.

The afternoon gain added on to a 350-point bounce on Wednesday, following a sharp drop that had gutted almost 12 percent from the index in the course of a week, sending it close to bear market territory.

The S&P/TSX composite index .GSPTSE was up 10.41 points, or 0.08 percent, at 12,507.56 at midday with five of its 10 main sectors in positive territory. The benchmark moved in a wide band, falling as low as 12,258.21 and climbing as high as 12,628.38.

The financial sector remained under water, losing 0.8 percent, dragged down by worries over the stability of U.S. investment bank Lehman Brothers LEH.N. For details, see: [ID:nN11366713].

Canadian Imperial Bank of Commerce (CM.TO) was down 3.2 percent at C$63.05, while Toronto-Dominion Bank (TD.TO) slipped 1.6 percent to C$62.14.

On the upside, the tech sector climbed 1.1 percent, buoyed by bellwether Research In Motion RIM.TO, which rose 2 percent to C$114.60.

Shares of yoga wear retailer Lululemon Athletica LLL.TO jumped 5.7 percent to C$20.32 after it reported a sharp jump in profit as it expanded its chain of stores. See: [ID:nN11395324]. ($1=$1.08 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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