September 15, 2011 / 8:58 PM / 7 years ago

CANADA STOCKS-TSX rallies on signs of euro-zone action

 * TSX up 131.46 points, or 1.07 percent, at 12,424.84.
 * Financials lead rally, energy sector also gains
 * Gold miners drag materials group down 0.7 pct  (Updates to close. Adds details, comments)
 By Trish Nixon
 TORONTO, Sept 15 (Reuters) - Toronto’s main stock index rose for a third straight session on Thursday as coordinated central bank action to boost liquidity in the strained European banking sector raised hopes that the euro zone debt crisis would be defused as a threat to global economic recovery.
 To increase liquidity, the European Central Bank said it would reintroduce three-month U.S. dollar loans in the fourth quarter in coordination with other major central banks, including the U.S. Federal Reserve. [ID:nL5E7KF2LG]
 “On its own this is just another headline to trade off of,” said John Johnston, chief strategist at Davis-Rea Ltd.
 “But it’s a sign that (policymakers) are being galvanized ... it’s a step in the right direction, and a sign that there’s more steps to come.”
 Toronto’s heavyweight financial sector, which has fallen in sympathy with battered European banks lately, led the rally, rising 2.3 percent.
 Royal Bank of Canada (RY.TO) jumped 3.2 percent to C$47.47, Toronto-Dominion Bank (TD.TO) rose 2.5 percent to C$75.17, and Manulife Financial (MFC.TO) surged 6.3 percent to C$12.91.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended the session up 131.46 points, or 1.07 percent, at 12,424.84. Nine of its 10 main groups were higher.
 Energy shares were 1.8 percent higher as oil prices climbed. Canadian Natural Resources (CNQ.TO) rose 2.2 percent to C$35.22, and Cenovus Energy (CVE.TO) advanced 3.3 percent to C$34.10. [O/R]
 The materials group fell 0.7 percent, dragged down by retreating precious metal miners as gold prices slipped below $1,800 an ounce. [GOL/] [ID:nL5E7KF1A4]
 Goldcorp Inc (G.TO) dropped 1.07 percent to C$49.83 and Agnico Eagle (AEM.TO) eased 2.6 percent to C$66.85.
 ($1=$0.98 Canadian)  (Editing by Peter Galloway)                 

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