(Adds strategist comment, updates prices to close)
* TSX ends up 221.09 points, or 1.62 percent, at 13,868.35
* Nine of the TSX's 10 main groups rise
* Bombardier slumps after planemaker says Airbus sale talks
ended
By Alastair Sharp
TORONTO, Oct 7 (Reuters) - Resource stocks helped extend a
rally in Canada's main stock index on Wednesday despite a drop
in crude oil prices, while Bombardier Inc BBDb.TO tumbled
after the planemaker said CSeries talks with Airbus had ended.
The energy sector rose 3 percent and materials climbed 2.5
percent as investors bid up the beaten-down groups.
"To an important degree it reflects the fact that everybody
got so negative," said John Johnston, chief strategy officer at
Davis-Rea. "When things are that negative you don't need good
news to go up, you just need less bad news."
Cash-strapped Bombardier was the single biggest loser,
plunging 13 percent to C$1.54 a day after Reuters reported
talks between Montreal-based planemaker and Airbus, which both
companies later said had failed. ID:nL1N1270IB ID:nL1N1262WG
Energy and materials stocks are down around 17-18 percent so
far this year, hurt by a slowdown in global growth that has hit
demand for the commodities they produce.
Canadian Natural Resources CNQ.TO was among the top
gainers on the day, surging 5.7 percent to C$31.23, while
pipeline company Enbridge Inc ENB.TO rallied 3.1 percent to
C$55.89.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 221.09 points, or 1.62 percent, at
13,868.35, for its fourth straight gain and highest close since
mid-August.
Consumer staples was the only sector that failed to rise.
There were 11 gainers for every three decliners.
Teck Resources Ltd TCKb.TO was also a major mover, surging
14.3 percent to C$8.89 after Franco-Nevada Corp FNV.TO said it
agreed to pay Teck $610 million to help fund operations at the
Antamina mine in Peru in exchange for a share of silver
production. ID:nL3N1272NH
The deal comes just two days after Franco-Nevada revised its
deal with First Quantum Minerals Ltd FM.TO for a project in
Central America. First Quantum shares have almost doubled in
price over the last several sessions, including Wednesday's 18.2
percent rise to C$8.85
Other influential gainers included Canadian National Railway
CNR.TO , which rose 2.5 percent to C$78.36 and Toronto-Dominion
Bank TD.TO , which added 1.4 percent to C$53.50.
CN Rail's industrials sector climbed 1.7 percent, while the
Bank of Nova Scotia's financials group gained 1.2 percent.