September 27, 2011 / 3:19 PM / 7 years ago

CANADA STOCKS-TSX surges nearly 3 pct on euro-zone hopes

 * TSX rises 334.64 points, or 2.86 pct, to 12,041.38
 * Main index closed up more than 2 pct on Monday
 * All 10 main index sectors higher
 By John McCrank
 TORONTO, Sept 27 (Reuters) - Toronto’s main stock market index surged nearly 3 percent on Tuesday morning, building on a rally that began late in Monday’s session as optimism mounted that a plan to ease the euro-zone’s debt crisis could prevent a global recession. [ID:nL3E7KR1JI]
 The Toronto Stock Exchange sank to a 14-month low early on Monday before European leaders said they would beef up the euro-zone’s rescue fund to contain the debt crisis, propelling the index to close up more than 2 percent. [ID:nS1E78P1QA]
 Miners and oil issues led the gains on Tuesday as commodity prices rose.
 Teck Resources TCKb.TO was up 6.54 percent at C$32.95 and Goldcorp (G.TO) was up 2.12 percent at C$48.69. Suncor Energy (SU.TO) gained 4.01 percent to C$28.79, while Canadian Natural Resources (CNQ.TO) was up 2.19 percent at C$70.07.
 U.S. crude oil was up more than $3.00 at $83.53, while the price of spot gold XAU= rose as much as 3.1 percent to $1,676.69 an ounce. [O/R] [MET/L]
 Despite the bounce-back in commodity prices from their recent rout, some market watchers were waiting for more clarity on the euro-zone plan and expecting more market volatility in the meantime.
 “It’s nice to see these bounces,” said Gavin Graham, president at Graham Investment Strategy. “The problem is it’s all based on hope rather than reality.”
 He said that even if Greek politicians are able to enact all the austerity measures being asked of them, the country would still likely default. [ID:nL5E7KR1W9]
 At 10.55 a.m. (1455 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 334.64 points, or 2.86 percent, at 12,041.83. All of the 10 index sectors were higher, with the mining-heavy materials sector up 3.32 percent and the energy sector up 4.22 percent.
 Financial stocks were also higher, with the sector up 2.16 percent. Bank of Nova Scotia (BNS.TO) was up 3.33 percent at C$54.04, and Royal Bank of Canada (RY.TO) was up 1.58 percent at C$48.74.
 Shares of Ivanhoe Mines (IVN.TO) were up 17 percent at C$17.57 after Rio Tinto (RIO.AX) (RIO.L) raised its stake in the company amid tensions over Mongolian plans to renegotiate a landmark deal related to the development of the Oyu Tolgoi copper-gold project in Mongolia. [ID:nS1E78Q0GE]
 BlackBerry maker Research In Motion RIM.TO rose 5.01 percent to C$23.46 on market speculation that activist investor Carl Icahn had taken a stake in the company. [ID:nS1E78Q0NL]
 Shares of Hanfeng Evergreen HF.TO tumbled 18 percent to C$2.29 after the Chinese fertilizer maker reported quarterly results that missed expectations, partly due to a maintenance-related shutdown at one of its plants.
 ($1=$1.02 Canadian)  (Editing by Peter Galloway)                 

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