(Updates throughout with sector details, analyst comments,
market reaction)
* TSX up 112.86 points, or 0.8 percent, to 14,190.22
* Eight of the TSX's 10 main groups were up
By Solarina Ho
TORONTO, July 29 (Reuters) - Canada's main stock index rose
on Wednesday, after briefly turning negative, as financial and
energy stocks helped guide the market higher and markets cheered
forecast-beating crude inventory data out of the United States.
The index, which has generally been in decline since highs
reached in April, built on Tuesday's gains.
The market could turn after the U.S. Federal Reserve
releases its latest monetary policy statement later in the
session.
"Possibly in the short term, markets will selloff on that
... But it's great for the long term because it means the U.S.
economy is doing better and that's good for everybody and for
stocks," said Norman Levine, managing director at Portfolio
Management Corporation.
"All that said, we are in the midst of a correction in North
America. It's one that's much needed, much anticipated and very
welcome."
The most influential movers on the index were financial
names, with Royal Bank of Canada RY.TO rising 1.43 percent to
C$74.67, and Toronto-Dominion Bank TD.TO advancing 1.5 percent
to C$51.93.
Manulife Financial Corp MFC.TO and Sun Life Financial Inc
SLF.TO were also up, with Manulife climbing 1.69 percent to
C$22.88 and Sun Life gaining 2.42 percent to C$42.31.
The overall financial services group was up 1.3 percent.
Levine was particularly positive on Canadian life insurers
because of their U.S. exposure: they will benefit from higher
U.S. interest rates, and with large U.S. operations, will also
benefit from the better economy.
At 11:16 a.m. EDT (1516 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE rose 112.86 points, or 0.8
percent, to 14,190.22, turning around modest losses earlier in
the morning.
Of the index's 10 main groups, eight gained. Advancing
issues outnumbered declining ones on the TSX by a 3.65-to-1
ratio on the upside.
Energy stocks rose 1.6 percent on the heels of U.S. crude
prices that reversed losses after investors cheered the latest
forecast-beating fall in U.S. inventory data. Oil prices have
been under immense pressure due to excess global supply. O/R
Suncor Energy SU.TO shares rose 1.3 percent to C$33.61.
Still, Levine cautioned investors not to pin their hopes on
commodity stocks, since overall prices were not going to recover
anytime soon.
In individual company news, Bombardier Inc BBDb.TO was up
4.4 percent at C$1.90 on a report that said the plane and train
maker was in talks with German engineering group Siemens AG
SIEGn.DE around a rail merger. Bombardier denied the report.
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