January 13, 2009 / 4:06 PM / 10 years ago

CANADA STOCKS-TSX shoots higher after string of selloffs

* TSX rebounds after 3 percent skid in Monday’s session

* Gains spread across all 10 sectors

* Some investors call latest selloff overdone (Adds details)

By Frank Pingue

TORONTO, Jan 13 (Reuters) - Toronto’s main stock index shot higher on Tuesday in a broad rally with investors returning to beaten down equities after a string of selloffs had left the TSX at its lowest level in two weeks.

The heavyweight materials sector, which had spearheaded the market’s steep slide in the previous session, rebounded to lead Tuesday’s rally. The energy group also recouped recent losses.

Toronto’s key index tumbled more than 3 percent in Monday’s session to wipe out all of the gains it had made since the start of the year. Last week it was up 5.76 percent for the year.

“Yesterday was a pretty dismal performance and it almost felt like the Christmas spirit and New Year’s bravado was over,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

“People are looking at the selloff yesterday as overdone and they’re coming in to buy a bit here.”

At 10:30 a.m. (1530 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 93.71 points, or 1.07 percent, at 8,887.04. Earlier, it had rallied to 8,976.33, for a gain of 183 points.

The materials sector, which makes up about 20 percent of the overall index, was up 3.6 percent.

Shares of Barrick Gold Corp (ABX.TO), the biggest contributor to the market’s overall gain, were up 4.7 percent at C$39.77, while Goldcorp (G.TO) shares rallied 5 percent to C$31.976.

Barrick and Goldcorp had been weighing on the market consistently in recent sessions.

In the energy group, Suncor Energy (SU.TO) shares drove the gain as they rallied 4.4 percent to C$27.73. Shares of EnCana Corp (ECA.TO) rose 2.3 percent to C$56.12, while Canadian Natural Resources (CNQ.TO) was up 0.5 percent at C$44.54.

Nakamoto said he expects the market could continue to see gains ahead of the inauguration of U.S. President-elect Barack Obama next week.

“We’re going to give him slack that he is going to be able to turn a dismal situation into a more manageable situation,” Nakamoto said. “I just think people are going to cut him slack, including investors, and give him the benefit of the doubt.”

$1=$1.23 Canadian Reporting by Frank Pingue; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below