November 25, 2008 / 3:09 PM / 10 years ago

CANADA STOCKS-TSX gains on Fed move despite oil-price slide

* Energy sector advances despite falling oil price

* Bank of Montreal profit up, stock gains 5 pct

* U.S. Fed to buy housing-related securities

TORONTO, Nov 25 (Reuters) - The Toronto Stock Exchange’s main index rose more than 1 percent on Tuesday morning as sentiment improved after the U.S. Federal Reserve announced an aid package designed to help bolster consumer lending.

The Fed’s package includes a $600 billion program to buy mortgage-related debt and securities and a $200 billion facility to buy consumer debt securities. [ID:nN25255949]

The news outweighed the effect of sliding oil prices, which often drive the Toronto index’s direction.

Shortly after 9:50 a.m. (1450 GMT), the S&P/TSX composite index .GSPTSE was up 96.79 points, or 1.2 percent, at 8,537.66. Eight of the index’s 10 main groups were higher.

Energy issues advanced 1.6 percent even though the price of oil fell to nearly $52 a barrel, unraveling a near 10-percent rally the previous session. [ID:nSP128607]

The materials group eased 0.9 percent, due in part to an easing gold price as a firmer U.S. dollar and softer oil prices prompted profit-taking after the previous session’s near six-week highs. [ID:nLP645887]

Financials gained nearly 2 percent as Bank of Montreal (BMO.TO) said its quarterly profit rose, helped by tax recoveries and new accounting rules that enabled the bank to avoid some writedowns that would have reduced income in its BMO Capital Markets unit. [ID:nN25284406]

Bank of Montreal rose 5 percent to C$35.85.

$1=$1.22 Canadian Reporting by Ka Yan Ng; Editing by Peter Galloway

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