October 11, 2011 / 3:13 PM / 6 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
 "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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