* TSX up 166.19 points, or 1.24 percent, to 13,607.25
* Broad rally saw all groups rise
* Energy shares lead pack on higher oil prices
By Julie Gordon
TORONTO, May 18 (Reuters) - Toronto’s main stock index rose more than 1 percent to hit a one-week high on Wednesday, with oil and gas issues leading a broad rally fueled by a rebound in energy, gold and copper prices.
Energy shares, which make up more than a quarter of the index, rose 2 percent, as oil prices gained more than 3 percent, swept up in a broad commodities rally. [O/R]
Suncor Energy (SU.TO) led the way, closing up 2.67 percent at C$39.56. Canadian Natural Resources (CNQ.TO) added 2.49 percent to C$40.74, while Imperial Oil (IMO.TO) gained 2.74 percent to $46.46.
“There was some bargain hunting going on, trying to find sort of longer-term opportunities that are at some pretty good prices,” said Brian Pow, vice president of research and equity analyst at Acumen Capital Partners.
“People are sort of putting their heads around how much money’s gone into the sector of late,” he added. “And just the overall sort of longer-term bullishness on Canadian oil.”
The Toronto Stock Exchange’s S&P/TSX composite index closed up 166.19 points, or 1.24 percent, at 13,607.25, rebounding after three straight weeks of declines.
The materials sector, which includes influential mining stocks, also helped lift the broader market with a 1.45 percent gain. Diversified miner Teck Resources TCKb.TO closed up 4.19 percent at C$48.70, while Potash Corp POT.TO gained 2.26 percent to C$53.49.
Uranium producer Cameco (CCO.TO), which fell more than 5 percent late last week, closed up 2.93 percent at C$26.71.
Research In Motion RIM.TO pushed higher for a second straight day, climbing 3.79 percent to C$44.11, and was one of the most influential gainers overall. Before their recent turn higher, RIM shares had fallen nearly 30 percent this year.
Corporate news was fairly light, so investors were focused on climbing resource prices. [GOL/] [MET/L] .CRB
Still, the composite index is vulnerable, said Michael Sprung, president at Sprung & Co. Investment Counsel.
“We’ve still got enough to worry about around the world, with problems continuing to build in Europe and the inflationary pressures that we’re beginning to see,” he said.
“But perhaps what’s happening today is people are just jumping in after the decline that we’ve had.”
The index in general will see continued volatility, said Pow, especially as summer holiday season starts up and volumes come off.
“Volatility will stick through the next couple of months,” he said. “But overall, I think the trend is upwards for the long-term.”
($1=$0.97 Canadian) (Editing by Jeffrey Hodgson)