July 14, 2008 / 3:17 PM / 11 years ago

UPDATE 1-Toronto stocks rise, helped by Shell-Duvernay deal

(Adds details)

*Key energy sector gets boost from Shell’s Duvernay deal

*Bombardier shares up 4 percent after CSeries launch

*Lift from U.S. Freddie rescue plan fades fast

TORONTO, July 14 (Reuters) - The Toronto Stock Exchange’s main index was higher at midmorning on Monday, boosted by strength in its key energy sector on news that Royal Dutch Shell Plc (RDSa.L) will buy Duvernay Oil Corp DDV.TO for C$5.9 billion ($5.9 billion).

The financials sector, which comprises just over a quarter of the index, gave the benchmark an early boost on the U.S. rescue plan for Fannie Mae FNM.N and Freddie Mac FRE.N mortgage giants, but the sector fell back fast, slipping 0.5 percent.

The U.S. Treasury and Federal Reserve unveiled measures late on Sunday to lend money and buy equity, if necessary, in the Fannie/Freddie companies to restore confidence in financial markets.

“The big news is Fannie Mae and Freddie Mac,” said Sal Masionis, stockbroker at Brant Securities, but he added that the fast fade of the plan’s impact reflects “huge problems” in the housing market, as well as battered investor sentiment.

“It still is a very confused market,” Masionis said.

The S&P/TSX composite index .GSPTSE was up 139.67 points, or 1.02 percent, at 13,848.77. Overall, four of its 10 main groups were higher.

The big oil and gas group led the rise, up 2.3 percent, on the Shell-Duvernay deal. Oil prices were steady around $145 a barrel.

Duvernay soared 40.5 percent to C$82.12 following the deal news. EnCana (ECA.TO) rose C$1.73, or 2.1 percent, to C$84.34.

Industrials trimmed early gains and slipped 0.14 percent, but Bombardier Inc (BBDb.TO) was up 31 Canadian cents, or 4.3 percent, at C$7.42. The company launched its long-awaited CSeries passenger jet on Sunday, pinning its hopes on fuel-efficient technology to challenge industry giants.

Materials stocks were up 1.9 percent on firmer gold prices. Barrick Gold (ABX.TO) rose 61 Canadian cents, or 1.2 percent, to C$50.61.

The health sector was up 5.5 percent. ($1=$1.01 Canadian) (Reporting by Jennifer Kwan; 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