September 25, 2008 / 2:24 PM / 10 years ago

UPDATE 1-Toronto stocks edge higher on US bailout optimism

*Energy stocks rise as oil fights back from early lows

*Tanganyika Oil rises sharply after bid by Sinopec

*RBC sags after report says SEC targets bank in probe

TORONTO, Sept 25 (Reuters) - The Toronto Stock Exchange’s main index rose shortly after the market open on Thursday as investors hoped the U.S. Congress might be close to a deal on a bailout plan for the U.S. financial industry.

The rise came as President George W. Bush was set for an emergency meeting with lawmakers to try to hammer out an agreement on the rescue plan. Bush warned during a televised address on Wednesday night of a “long and painful recession” if Congress fails to act swiftly to approve the deal. For more details see [ID:nSP335584]

Hopes for a deal were offset by gloomy U.S. manufactured goods and weekly jobless data [ID:nN25327565], and a profit warning from U.S. economic bellwether General Electric (GE.N) [ID:nSP335584], said Rick Hutcheon, president and chief operating officer at RKH Investments.

At 10 a.m. EDT, the S&P/TSX composite index .GSPTSE was up 28.93 points, or 0.23 percent, at 12,542.29, with eight of its 10 main groups higher.

The energy and financial services sectors were up 0.5 percent and 0.3 percent respectively.

In the oil patch, Tanganyika Oil Co Ltd TYK.TO rose 11.6 percent to C$29.01 after Chinese oil firm Sinopec Group agreed to buy the small producer of heavy oil in Syria in a deal valuing the company at C$2.07 billion. [ID:nHKG194242]

In financials, Royal Bank of Canada (RY.TO) slipped 0.6 percent to C$50.93 after the National Post newspaper said Canada’s biggest bank is at the top of the list for enforcement agents at the U.S. Securities and Exchange Commission who are investigating the collapse of auction-rate securities market.

The newspaper said authorities are cracking down on financial institutions amid mounting public anger over the plan to bail out banks exposed to the credit crisis.

The resource-laden materials group fell 1.4 percent on weaker metals prices. Barrick Gold (ABX.TO) (ABX.TO) dropped 0.9 percent to C$39.60. ($1=$1.03 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)

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