Bay Street Soars on Energy

Roger Biduk writes:

The Toronto stock market soared almost 700 points, led by a big runup in energy stocks as oil prices moved higher and investors grew confident that massive injections of government cash into the financial system was starting to thaw the credit markets.

Toronto's S&P/TSX composite index jumped 688.91 points or 7.2 per cent to 10,251.4 on top of last week's 500-point gain.

The TSX was lifted by energy stocks as oil prices moved higher ahead of a meeting of the Organization of Petroleum Exporting Countries at the end of the week. OPEC is widely expected to cut production significantly in an attempt to support oil prices that are half of their July peak of US$147 a barrel.
The TSX energy sector rose more than 14 per cent as the November crude contract on the New York Mercantile Exchange rose $2.40 to US$74.25 a barrel. EnCana Corp. (TSX:ECA) advanced $7.19 to $57.07.

The financial sector was ahead five per cent as Royal Bank (TSX:RY) improved $3.58 to $49.83 while CIBC (TSX:CM) was ahead $2.99 to $60.99. Financial stocks were boosted by hopes that Ottawa is set to guarantee loans that Canada's banks extend to other financial institutions.

Roger Biduk writes:

The TSX Venture Exchange was ahead 38.82 points to 984.94, while the Canadian dollar shed 0.48 cent to at 83.77 cents U.S. ahead of the Bank of Canada's announcement on interest rates Tuesday. Economists expect the central bank to cut its key interest rates by at least a quarter-point to deal with worsening economic conditions.

Gold was up $2.30 to US$790 an ounce on the Nymex, taking the TSX gold sector ahead more than 11 per cent with Goldcorp Inc. (TSX:G) ahead 13.8% to $26.75 and Barrick Gold (TSX:ABX) advanced 15.4% to $32.33.

Base metals were also stronger as Teck Cominco Ltd. (TSX:TCK.B) added $3.24 to $26.75 and FNX Mining (TSX:FNX) jumped $1 or 17.25 per cent to $6.80.
First Nickel Inc. (TSX:FNI) fell one cent or 18 per cent to 4.5 cents after suspending production at its Lockerby mine near Sudbury due to low metal prices and the "challenging financial environment."
On the TSX, advances beat declines 1,174 to 374 with 195 unchanged as 473 million shares traded worth $6.8 billion.

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