(Updates with additional details, market reaction, analyst
comments)
* TSX up 338.97 points, or 2.53 percent, at 13,720.56
* All of the TSX's 10 main groups rose
By Solarina Ho
TORONTO, Aug 27 (Reuters) - Canada's main stock index jumped
more than 2 percent on Thursday, recouping this week's hefty
losses, as a surge in crude prices fueled a rally in energy
shares and helped lead an across-the-board bounce.
U.S. CLc1 prices vaulted 6.8 percent to $41.23 a barrel
late morning on a global rally in equity markets and an
unexpected fall in U.S. crude inventories. O/R
"You've seen a rebound in oil prices, so that's really
driving it," said Kevin Headland, director at Manulife Asset
Management's Portfolio Advisory Group, who still warned of
tougher days ahead.
"Demand for commodities is definitely not improving. The
slowing growth in China, the slowing growth around the world, I
think that's really going to keep a lid on the TSX for the next
little while."
All 10 of the index's 10 main groups were on higher ground,
with the three most influential sectors, energy, materials and
financials climbing 6.4 percent, 2.1 percent, and 3.6 percent,
respectively. The three groups make up roughly two-thirds of the
index's weight.
Suncor Energy Inc SU.TO was the most influential gainer on
the index, jumping 4.9 percent to C$36.22. It was closely
followed by Canadian Natural Resources Ltd CNQ.TO , which
soared 7.5 percent to C$27.95.
Canada's biggest bank, Royal Bank of Canada RY.TO , jumped
2.4 percent to C$73.80.
At 11:31 a.m. EDT (1531 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE rose 338.97 points, or 2.53
percent, to 13,720.56.
Advancing issues outnumbered declining ones on the TSX by
234 to 12, for a 19.50-to-1 ratio on the upside.
On the earnings front, both Toronto-Dominion Bank TD.TO
and Canadian Imperial Bank of Commerce CM.TO reported higher
third-quarter profits that topped estimates. The results helped
TD rise 1.1 percent to C$52.38, while CIBC rose 5.6 percent to
C$95.40 ID:nL1N1120I6
Headland cautioned that the impact of cheap energy prices
was starting to hit banks and said it will become tougher for
Canadian banks to maintain their margins.