April 29, 2010 / 3:07 PM / in 8 years

CANADA STOCKS-TSX surges on Greek hopes, earnings

*TSX up 137.77 points, or 1.1 percent, at 12,214.66

*Financials, energy, materials lead index higher

By Claire Sibonney

TORONTO, April 29 (Reuters) - Toronto’s main stock index rose more than 1 percent on Thursday morning after two sessions of losses as fears over sovereign debt in the euro zone ebbed slightly and company earnings continued to impress the market.

Greece readied severe austerity measures to secure multibillion-dollar aid plans, providing relief to financial markets, and Canadian banking shares were up 1.2 percent. [ID:nLDE63S0BL]

Royal Bank of Canada RY.TO, the country’s biggest lender, surged 2.2 percent to C$61.92, and No. 2 Toronto-Dominion Bank TD.TO added 1.3 percent to C$75.56.

“Risk is back on this morning,” said Francis Campeau, broker at MF Global Canada. “The overall earnings picture has been good. The Pandora’s box is what’s going to come up out of Europe. That’s the risk right now.”

On the earnings front, Potash Corp of Saskatchewan POT.TO, the world’s largest fertilizer maker, rallied 1.2 percent to C$111.05, after it posted higher first-quarter earnings and as the price of corn strengthened, even though the company’s outlook fell short of analysts’ expectations. [ID:nN29200817]

Oil rose above $84 a barrel on encouraging signs of buoyant U.S. fuel demand, shrugging off credit rating downgrades for southern European countries. The TSX index’s powerhouse energy sector rose 2 percent. [O/R]

Suncor Energy Inc SU.TO, Canada’s biggest oil producer, shot up 2.7 percent to C$34.46, while EnCana Corp ECA.TO, the country’s biggest producer of natural gas, gained 1.5 percent to C$33.12.

Imperial Oil IMO.TO, Canada’s No. 2 oil exploration and refining company, rose 1.1 percent to C$43.38 after earnings that showed a 65 percent increase in profit. [ID:nWNAB3925] [ID:nN28128081]

At 10:28 a.m. (1428 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 137.77 points, or 1.14 percent, at 12,214.66. Eight of its 10 sectors were higher.

The index’s materials group was up 1 percent as gold prices firmed, with Barrick Gold Corp ABX.TO, the world’s biggest bullion producer, jumping 2.4 percent to C$43.54 as analysts raised their share-price targets for the company. [GOL/] [ID:nWNAB3930]

In other company news, Bombardier Inc BBDb.TO, the world’s No. 3 civil aircraft maker, surged 5.4 percent to C$5.46 after CIBC World Markets initiated coverage of the company with a “sector outperform” rating.

$1=$1.00 Canadian Reporting by Claire Sibonney, editing by Peter Galloway

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