October 5, 2011 / 8:34 PM / 7 years ago

CANADA STOCKS-TSX rallies strongly after steep three-day fall

 *TSX ends up 279.31 points, or 2.5 pct, at 11,457.22
 *All 10 sectors stronger, energy leads
 *RIM surges on takeover speculation  (Updates to close)
TORONTO, Oct 5 (Reuters) - Toronto’s main stock index rallied on Wednesday after three days of losses, jumping more than 2 percent as commodity prices rebounded and U.S. economic data came in stronger than expected.
 Among the index’s top gainers were battered energy shares as U.S. oil futures settled more than 5 percent higher, boosted by a big drawdown in domestic crude stocks and the positive economic data. [O/R]
 Suncor Energy (SU.TO) surged 8.1 percent to C$27.50 and Canadian Natural Resources (CNQ.TO) jumped 6.2 percent to C$30.68.
  All 10 TSX index sectors were higher as the resource-heavy Canadian market outperformed its U.S. counterparts, catching up after recent underperformance. [.N] Among the standouts were financial shares with Bank of Nova Scotia (BNS.TO) adding 3.1 percent to C$51.74.
  “We’re in an environment where the market is extremely oversold. My guess is we’re still in a declining market, we’re still in a bear market,” said John Johnston, chief strategist at Davis-Rea.
 “I don’t know if it’s bottomed yet but things have gotten so negative in the short term that any less bad news, or even modestly good news, could give us a good lift.”
 News that European leaders agreed to examine ways to shore up troubled euro zone banks helped lift sentiment. [ID:nL5E7L51RH] [ID:nL3E7L42VF]
 So did U.S. data that showed steady growth in service sector activity and private employment. [ID:nN1E79407S]
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed up 279.31 points, or 2.5 percent, at 11,457.22.
 Research In Motion RIM.TO jumped 10.3 percent to C$24.49 on takeover speculation a day after the BlackBerry maker’s stock fell below $20 for the first time in almost six years. [ID:nN1E7940U7]
 Also gaining were gold miners as bullion prices turned higher after dropping below $1,600 an ounce. Among them, Goldcorp  (G.TO) was up 3.1 percent at C$47.38. [GOL/]
($1=$1.05 Canadian)  (Reporting by Ashleigh Patterson and Claire Sibonney; editing by Peter Galloway)                 

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