* TSX up 1.6 percent at 11,702.82
* Bank of Montreal reports higher-than-expected results
* All 10 index sectors rise (Adds details)
TORONTO, May 26 (Reuters) - Toronto’s main stock index jumped more than 1 percent on Wednesday morning, spurred by Bank of Montreal (BMO.TO), which said its quarterly profit doubled.
Bank of Montreal’s higher-than-expected results kicked off the quarterly earnings season for Canadian banks with a bang, and the shares of the five biggest banks all rose. The index’s financial group was up 1.7 percent.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 184.74 points, or 1.6 percent, at 11,702.82. All of its 10 main groups were higher.
The rise continued momentum picked up on Tuesday afternoon, when the index reversed almost all of the 2 percent loss it suffered early in the day due to worries that Europe’s banking problems could derail global economic recovery.
“Yesterday was more short-cover rallying than anything and I think sentiment is still fragile,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. “But overall the tone is better than yesterday.”
Commodity-related issues pushed higher on Wednesday as prices for oil and other key resources rose. Oil rose above $70 a barrel. The index’s energy and materials sectors were both up 2 percent.
$1=$1.07 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway