UPDATE 2-Toronto stocks rebound as commodities gain
August 20th, 2008 | by admin |(Updates to midday)
* TSX rebounds as commodity prices climb
* Resource shares pull index higher
* Banks lead downside amid more credit crunch woes
TORONTO, Aug 19 (Reuters) - The Toronto Stock Exchange’smain index pushed higher on Tuesday, fueled by a rebound incommodity prices that overshadowed worries over the U.S.economy and more fallout from the credit crisis.
The index recovered from an earlier drop of more than 100points as gold an oil prices reversed course to climb higher,lifting Bay Street’s heavyweight energy and materials sectors.In the oil patch, Canadian Natural Resources (CNQ.TO: Quote, Profile, Research, Stock Buzz) rose morethan 4 percent.
But the broader market was held back by concerns over theoutlook for the U.S. economy following data that suggested afurther deterioration in the housing market, while wholesaleprices jumped in July.
Financials sagged as shares were hurt by a forecast thatU.S. investment bank Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) will likely take afurther $4 billion in writedowns in the third quarter. See:[ID:nBNG259145]. Canadian Imperial Bank of Commerce (CM.TO: Quote, Profile, Research, Stock Buzz)slid more than 3 percent.
The S&P/TSX composite index .GSPTSE was up 57.70 points,or 0.44 percent, at 13,177.07 but just three of its 10 mainsectors were in positive territory.
