(Adds investor comment, updates prices to close)
* TSX ends up 163.69 points, or 1.14 percent, to 14,466.39
* Half of the TSX's 10 main groups close higher
By Alastair Sharp
TORONTO, Aug 10 (Reuters) - Canada's main stock index
rebounded on Monday, with robust gains from major banks and a
surge in some gold miners and energy companies helping the index
rise over 1 percent, more than cancelling out Friday's slump.
Four of the six biggest positive drivers were banks. The
financials group, which also includes insurers and makes up
roughly a third of the index, climbed 1.2 percent.
Toronto-Dominion Bank TD.TO advanced 1.6 percent to
C$53.25, Royal Bank of Canada RY.TO rose 1.2 percent to
C$77.28, and Bank of Montreal BMO.TO added 1.4 percent to
C$73.79.
"In a period of zero interest rates they remain attractive,"
said John Ing, president of Maison Placements Canada. "The
dividends of the banks are a good refuge."
But while the energy group jumped almost 3 percent, Ing said
the outlook is more uncertain in that major part of the index.
"The market gets encouragement from fewer wells being
drilled or (disappointed by) too many rigs, and it vacillates
from week to week," he said. "But the overall direction we
believe is still down because the problems still remain. That
is, overproduction."
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 163.69 points, or 1.14 percent, to 14,466.39.
Half of the 10 main groups rose, with seven advancing stocks for
every two decliners.
"It's a relief rally, truthfully," said John Stephenson,
President & CEO at Stephenson & Company Capital Management.
"Earnings have been decent, so that's a plus. So you've got
a little bit of a pick up in some of the commodities, though not
much. You had Shanghai and the Asian markets up overseas."
The materials group, home to mining companies, jumped 3.9
percent. Barrick Gold Corp ABX.TO jumped 7.1 percent to
C$9.90, while Goldcorp Inc G.TO rallied 5.7 percent to
C$18.66.
Gold miners were helped by slightly higher bullion prices,
which found support around the $1,100-an-ounce level. Base metal
miners were aided by copper prices that rebounded from six-year
lows following stronger-than-expected imports from China,
despite otherwise disappointing economic data.
Despite Monday's gains, Stephenson expects the index to see
more volatility throughout August. "I think the forecast is for
more unsettled weather to come," he said.