May 28, 2008 / 9:18 PM / 10 years ago

UPDATE 4-Toronto stocks charge higher on resource rally

(Adds details, quotes)

* TSX jumps more than 1 percent as resources gain

* Energy sector gets boost from higher oil price

* Toronto-Dominion edges up despite profit slide

By Leah Schnurr

TORONTO, May 28 (Reuters) - The Toronto Stock Exchange’s main index rallied on Wednesday, propelled by a rebound in resource issues as oil prices bounced back from an earlier retreat.

After a shaky start, the index rose more than 160 points, heartened by a rise in heavyweight energy shares, which added 1.4 percent.

Canadian Oil Sands Trust COS_u.TO was up C$2.09, or 4.3 percent, at C$51.21, while Canadian Natural Resources CNQ.TO put on 95 Canadian cents, or 1 percent, to C$98.89.

The resource-laden materials sector also gave support, rising 1.8 percent, with fertilizer producers Potash Corp of Saskatchewan POT.TO and Agrium AGU.TO rising C$6.51, or 3.4 percent, to C$195.50, and C$3.98, or 4.9 percent, to C$85.30 respectively.

“That’s the main story today -- with the rebound in oil, we’re seeing a pretty good day,” said Levente Mady, broker at MF Global Canada in Vancouver.

The S&P/TSX composite index .GSPTSE closed up 166.49 points, or 1.15 percent, at 14,688.62 with seven of its 10 main sectors higher.

Bank reporting season continued with Toronto-Dominion Bank TD.TO posting a decline in second-quarter profit, hit by restructuring charges and a profit drop at its wholesale banking unit due to the credit crunch. TD shares edged up 26 Canadian cents, or 0.4 percent, to C$68.70.

Douglas Davis, president at Davis-Rea, said that TD’s results were not as good as he had expected, but noted that earnings by Bank of Montreal BMO.TO and Bank of Nova Scotia BNS.TO on Tuesday were better than he had thought, “so I think overall the banks are coming in pretty well.”

The financial sector added 0.7 percent, with help from Scotiabank, which gained C$1.14, or 2.4 percent, to C$48.79 a day after it reported a lower profit and higher provisions for credit losses.

Laurentian Bank LB.TO rose 57 Canadian cents, or 1.4 percent, to C$41.82 after it said its profit rose due to growth in its loan and deposit portfolios.

Mady said that while Canadian banks have not been hurt by the credit squeeze as much as U.S. banks have, fears of more problems for the sector persist.

“Financials in general continue to struggle,” said Mady. “No matter how you slice it or dice it, that’s still a problem sector and I think it’s going to struggle in Canada as well.”

Sears Canada SCC.TO jumped C$1.70, or 7.2 percent, to C$25.20 after the country’s second-biggest department store chain said a property sale gain offset declining same-store sales and lifted its first-quarter profit.

Also on the upside, the tech sector advanced 1.2 percent, with help from Research In Motion RIM.TO, which rose C$2.26, or 1.7 percent, to C$135.94.

Market volume was 355 million shares worth C$7.2 billion. Decliners outpaced advancers 804 to 759. The blue chip S&P/TSX 60 index .TSE60 closed up 10.86 points, or 1.25 percent, at 876.69.

In New York, stocks got a lift from data suggesting stronger business spending, which helped shares of computer makers and heavy equipment manufacturers.

The Dow Jones industrial average .DJI closed up 45.68 points, or 0.36 percent, at 12,594.03, and the Nasdaq composite index .IXIC inched up 5.46 points, or 0.22 percent, to 2,486.70. ($1=$0.99 Canadian) (Editing by Rob Wilson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below