June 24, 2009 / 2:43 PM / 10 years ago

CANADA STOCKS-TSX rises on economic reports, Addax deal

* TSX up 1.99 percent at 10,093.30

* Addax shares up 9.3 percent after Sinopec deal (Adds details, quote)

By Jennifer Kwan

TORONTO, June 24 (Reuters) - Toronto’s main stock index rose on Wednesday morning as new reports fanned optimism about economic recovery, while investor sentiment was boosted by news that China’s Sinopec Group will buy Addax Petroleum AXC.TO for C$8.27 billion.

U.S. data showed surprisingly strong May durable goods orders [ID:nN24159862], while the Organization for Economic Cooperation and Development said prospects for economic recovery next year have improved for the first time in two years. [ID:nSP467098]

The reports helped boost sentiment for metals prices, and the TSX index’s mining-heavy materials group was up 2.2 percent. Teck Resources TCKb.TO climbed 4.9 percent to C$18.72.

Financials climbed 2.3 percent with Royal Bank of Canada (RY.TO) up 1.6 percent at C$44.75.

“You’ve had some decent news,” said Paul Hand, managing director at RBC Capital Markets. “The market didn’t crater overnight.”

At 10:32 a.m. (1432 GMT), the S&P/TSX composite index .GSPTSE was up 196.60 points, or 1.99 percent, at 10,093.30, with all of its 10 main groups higher.

Another factor helping sentiment, added Hand, was news that China’s Sinopec Group will buy Addax Petroleum in a move to secure the oil and gas explorer’s high-potential oil blocks in West Africa and Iraq’s Taq Taq field. [ID:nBNG477261]

The energy sector rose 2.1 percent, with Addax Petroleum, the top net gainer on the market, up 9.3 percent at C$49.90.

The market also awaited the conclusion of the U.S. Federal Reserve policy meeting later on Wednesday. The U.S. central bank is widely expected to keep interest rates on hold at a record low and keep its planned debt purchases unchanged. [ID:nN23511065] [ID:nN22496767]

$1=$1.15 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway

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