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Robust energy firms help Toronto stocks rally

20/05/08

TORONTO (Reuters) - The Toronto Stock Exchange's main index climbed further into record territory on Tuesday, thanks to soaring oil prices which boosted energy shares.

Suncor Energy jumped C$4.88, or 7.2 percent, to C$72.41, while Imperial Oil rose C$4.33, or 7.6 percent, to C$61.01.

Overall, the sector, which accounts for almost 30 percent of the index, gained 3 percent, as the price of oil hit a new high near $130 a barrel amid bullish price forecasts and tight supplies of refined products.

The S&P/TSX composite index <.GSPTSE> was up 96.56 points, or 0.64 percent, at 15,080.76, after hitting an intraday high of 15,090.74. In volatile trading, the benchmark passed 15,000 for the first time shortly after the open, before dropping to as low as 14,914.85.

Shares of Petrobank Energy and Resources jumped C$2.90, or 5.2 percent, to C$58.36 after a report that India's Oil and Natural Gas Corp was getting ready to make a bid for a Canadian oil producer. A Petrobank executive dismissed speculation his company was the target.

Canadian Superior Energy rose 2.7 percent, or 11 Canadian cents, to C$4.12 after it said it plans a liquefied natural gas facility off the coast of New Jersey to supply gas to the U.S. Northeast.

Gold producers also bolstered the benchmark index's rise, with the sector adding 2.7 percent as gold prices strengthened. Agnico-Eagle Mines pushed up C$2.41, or 3.5 percent, to C$71.71, and Barrick Gold rose C$1.98, or 4.9 percent, to C$42.16.

BCE Inc , which had been partly responsible for the index's downward momentum in the morning, lost C$1.17, or 3 percent, to C$37.65, amid concerns surrounding its C$34.8 billion buyout.

Weekend reports said the banks behind the buyout had submitted new financing terms to the buyout group, underscoring uncertainty over whether the deal will be completed.

The telecommunications sector was off 1.2 percent.

($1=$0.99 Canadian)

(Reporting by Leah Schnurr; Editing by Bernadette Baum)

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