February 25, 2009 / 9:53 PM / 10 years ago

CANADA STOCKS-TSX gets boost from higher oil, TD results

* TSX rises 0.93 percent to 7,932.30

* Financials lead TSX higher

* TD Bank climbs 1.7 pct after results (Adds details, quote)

TORONTO, Feb 25 (Reuters) - Toronto’s main stock index rose on Wednesday for a second straight session as energy issues gained on stronger oil prices and financials got a boost from smaller-than-expected drop in quarterly profit at Toronto-Dominion Bank (TD.TO). [ID:N25325226]

“The (TD) results were pretty decent given the environment we are in and I think that is sparking a relief rally in Canadian bank shares,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

The financial sector finished the day up 3.1 percent after sliding 4 percent in early action. Royal Bank of Canada (RY.TO) rose 5.3 percent to C$29.99, and Bank of Nova Scotia (BNS.TO) added 4.2 percent to finish at C$27.34.

TD Bank, Canada’s second-largest bank, rose 1.7 percent to C$35.85.

Manulife Financial (MFC.TO) was up 1.3 percent at C$13.68. Manulife, Canada’s largest insurer, said on Wednesday it will raise the number of shares it will offer in its current preferred share issue. [ID:nN25491671]

Also supporting the rally were oil and gas issues, which climbed 1.9 percent as oil CLc1 ended higher at $42.50 a barrel, drawing support from a U.S. government report that showed a sharp drop in gasoline inventories. [ID:nSP425877]

In see-saw action, the materials sector ended the day down 0.9 percent, pressured by fertilizer producer Agrium AGU.TO, which dropped 8.5 percent to C$46.03. Agrium launched an unsolicited $3.6 billion offer to buy U.S. rival CF Industries (CF.N) on Wednesday.

Gold miner Barrick Gold (ABX.TO) slipped 0.4 percent to C$39.09, and Goldcorp (G.TO) dropped 0.11 percent at C$34.99.

The S&P/TSX composite index .GSPTSE closed up 72.97 points, or 0.93 percent, at 7,932.30, with five of its 10 main groups higher. The gain added to a rise of 2.8 percent on Tuesday.

$1=$1.26 Canadian Reporting by Jennifer Kwan; Editing by Peter Galloway

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