February 25, 2009 / 10:19 PM / 10 years ago

CANADA STOCKS-TSX rises with oil price, 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)

By Jennifer Kwan

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. [ID:nN25476074]

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.

At the open, data on the value of the index was delayed by 12 minutes. Standard & Poor’s said in a statement that real time data feeds were delayed by technical difficulties.

Levente Mady, broker at MF Global Canada, in Vancouver, said the market was due for a “bounce” but concerns over the health of the U.S. banking sector and the global economic outlook will continue to weigh.

“There’s more trouble ahead,” he said. “There’s more weakness coming down the pipe.”

The blue chip S&P/TSX 60 index .TSE60 closed 4.30 points higher, or 0.91 percent, at 477.85. ($1=$1.26 Canadian) (Reporting by Jennifer Kwan; Editing by Peter Galloway)

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