(Updates with official close, comments, details)
TORONTO, Dec 12 (Reuters) - The Toronto Stock Exchange’s main index ended higher on Wednesday on the back of rising energy and mining stocks, but down from its early-session highs.
Stocks surged early as investors went bargain-hunting after the previous session’s sharp drop, spurred by a move by major central banks to join forces to launch short-term funding to ease credit market strains.
However, stocks pulled back later in the day as nervousness returned to the market.
“I think as the day progressed investors reassessed what the implications of the central bank effort,” said Elvis Picardo, investment strategist at Northern Securities in Vancouver.
The S&P/TSX composite index closed up 85.67 points, or 0.62 percent, at 13,809.38, after rising as high as 13,942.04
Five of the 10 TSX subgroups ended higher, led by a 1.48 percent rise among materials issues and a 2.04 percent rise in energy stocks, spurred by a combination of stronger oil prices and individual company news.
Oil jumped nearly 5 percent to over $94 a barrel.
Meanwhile, EnCana Corp (ECA.TO), Canada’s top oil and gas producer, rose more than 3 percent after the company said it will raise production by 5 percent in 2008, increase capital spending by 13 percent to $6.9 billion, and double its annual dividend to $1.60 a share.
EnCana stock climbed C$2.23 to C$68.65.
$1=$1.01 Canadian Reporting by Cameron French; Editing by Rob Wilson