October 11, 2011 / 3:13 PM / 7 years ago

CANADA STOCKS-TSX up more than 2 pct on Daylight, catch-up

 * TSX rises 298.51 points, or 2.58 pct to 11,886.87
 * Toronto plays catch-up after closed Monday for holiday
 * All ten sectors higher
 * Energy boosted by takeover bid for Daylight
 By Ashleigh Patterson
 TORONTO, Oct 11 (Reuters) - Canadian stocks rose more than 2 percent on Tuesday, playing catch up with global market gains on Monday when the Toronto exchange was closed for holiday, and boosted by a takeover bid in the energy sector.
 The energy sector was up more than 4 percent, helped by a rally in shares of Daylight Energy DAY.TO after a unit of China Petrochemical Corp (Sinopec) signed a deal to buy the Canadian oil and gas exporter for C$2.2 billion ($2.1 billion) in cash.
 Shares of Daylight rose to C$9.67 in early trade, more than doubling their price from Friday’s close. Daylight Energy shares were the most actively traded on the Toronto Stock Exchange.
 “Most people are looking at the proposed takeover of Daylight, so you’re seeing over 20 million shares trading in the first 11 minutes,” said Irwin Michael, portfolio manager at ABC Funds.
 The materials sector, which includes gold and base metal miners, rose 3.15 percent, led by fertilizer producer Potash Corp POT.TO, which was the biggest gainer on the index, climbing more than 6 percent to C$49.19.
 Agrium AGU.TO also jumped 5.16 percent to C$74.83, as analysts expect bullish data to emerge from the U.S. Department of Agriculture’s monthly crop report on Wednesday.
 Shares of North American fertilizer producers typically mirror moves in corn prices and analysts expect corn prices to rise on the data, due to negative revisions to production and positive revisions to demand.
 Barrick Gold (ABX.TO) rose 1.75 percent as the world’s No.1 gold miner played catch up after the Canadian Thanksgiving holiday on Monday, when spot gold rose more than 2 percent.
 At 10:45 a.m. (1445 GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 298.51 points, or 2.58 percent, at 11,886.87.
 In the United States, stocks turned positive after slipping in early trade, as investors awaited results of a key vote by Slovakia’s parliament on whether to expand the powers of the euro zone rescue fund. [.N]
 “The bottom line is there is a little bit of catch up here compared to the U.S. because we were closed yesterday. Gold is down, oil is down so there is a little bit of an adjustment to the catch up,” said Michael.
 It’s expected Slovakia will ratify a plan to increase the size and powers of the European Financial Stability Facility bailout fund despite opposition from a junior coalition party that chose to abstain from the vote on Tuesday.
 For the EFSF pact to come into effect, all 17 member states must ratify the deal. Investors hope the facility will help solve the euro zone’s debt crisis, which has hurt market sentiment globally.
 “People are a little edgy, they’re waiting for the vote out of Slovakia with the European Union, so we’ll see what happens,” said Michael.  (With additional reporting by Euan Rocha and Julie Gordon; Editing by Jeffrey Hodgson)                 

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