TORONTO (Reuters) - Nortel Networks Corp. led Toronto stocks to a higher close on Wednesday as its bullish outlook sparked a rally among technology shares, while a jump in oil prices allowed energy issues to add support.
The Toronto Stock Exchange S&P/TSX composite index rose 46.86 points, or 0.49 percent, to 9,654.16.
Nortel made encouraging comments about second-quarter demand for its telecom equipment on Wednesday, a day after releasing tardy first-quarter results that displayed a loss against a year-before profit.
The company has been wrapped in a scandal that forced it to restate several years of results and delayed release of its financial statements. Tuesday's results bring it up to date.
"Perhaps it's a relief to an awful lot of people, Nortel fans that have been patiently waiting to get some of this horrific news over with," said John Kinsey, portfolio manager at Caldwell Securities Ltd.
"It was an ongoing saga, which seemed like forever, and now they are up to date, so it will be interesting to see if indeed they really have got their house in order."
Shares of Nortel, the biggest contributor to the market's gain, jumped 30 Canadian cents, or 9.4 percent, to C$3.49, their highest close since mid March, while Celestica Inc. rose 54 Canadian cents, or 3.4 percent, to C$16.36.
The information technology sector rose a market-leading 2.7 percent, followed by a 1.4 percent gain a by energy shares. Eight of the 10 main TSX subindexes were higher.
Energy shares enjoyed stronger oil prices. U.S. oil futures soared above $54 a barrel as heating oil rallied. Crude for July delivery settled up $2.63 at $54.60 a barrel on the New York Mercantile Exchange.
Shares of EnCana Corp. gained 55 Canadian cents, or 1.3 percent, to C$44.05., while Canadian Natural Resources gained C$1.09, or 3 percent, to C$37.34.
($1=$1.25 Canadian)
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