June 23, 2008 / 2:39 PM / 11 years ago

UPDATE 1-BCE, energy shares boost Toronto stocks

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TORONTO, June 23 (Reuters) - Toronto stocks climbed on Monday after the Supreme Court of Canada’s decision moved BCE Inc’s (BCE.TO) leveraged buyout closer to completion and buoyant oil prices propped up the resource-heavy market.

By midmorning, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE gained 70.95 points, or 0.5 percent, to 14,651.62, after dropping more than 200 points on Friday.

Six of the TSX index’s 10 main groups were higher, led by a 1.8 percent boost from the telecommunications group and a 1.7 percent rise among energy shares.

BCE jumped 8 percent to C$37.37 after the Supreme Court of Canada approved BCE’s C$34.8 billion ($34.1 billion) leveraged buyout plan late on Friday, overturning a Quebec Court of Appeal decision which had said the deal didn’t take adequate account of the interest of bondholders.

“The market is attempting to get off to a positive start,” said Michael Sprung, president at Sprung and Co Investment Counsel. “Certainly the big jump has got to be BCE above everything else.”

Energy shares rose on firm oil prices as escalated tensions between Israel and Iran heightened supply concerns.

Among the country’s top energy producers, Suncor Energy (SU.TO) climbed 2.5 percent to C$63.34 and Nexen Inc NXY.TO added 2.3 percent to C$41.25.

Industrial shares got a lift from Bombardier Inc (BBDb.TO) which said on Monday it had won regional jet contracts totaling about $226 million with two different carriers.

Bombardier jumped 1.8 percent to C$7.54.

The broader gains on the key index were, however, tempered by materials issues, which were off 0.5 percent and the heavily weighted financial shares, which slipped 0.6 percent.

The resource-heavy materials sector slipped as the price for gold fell under the key $900 an ounce mark on a stronger U.S. dollar.

Barrick Gold (ABX.TO), the world’s biggest producer, fell 0.6 percent to C$40.70 and Agnico-Eagle Mines (AEM.TO) dropped 28 Canadian cents C$65.74.

The country’s biggest fertilizer producers were also lower. Potash Corp POT.TO slipped 1.2 percent to C$230.85 and Agrium Inc AGU.TO dropped 0.9 percent to C$109.75.

Bunge Ltd (BG.N), a U.S. fertilizer producer and oilseed processor, said it would buy Corn Products International Inc CPO.N for $4.4 billion in stock.

Also in the materials patch, HudBay Minerals (HBM.TO), which said it planned to buy Skye Resources Inc SKR.TO for around C$460 million ($451 million) in stock, slipped 3.5 percent to C$14.27 as investors worried the stock transaction was dilutive. ($1=$1.02 Canadian) (Reporting by Scott Anderson; Editing by Bernadette Baum)

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