(Updates throughout with fresh analyst comment, market
reaction, details)
* TSX up 238.82 points, or 1.77 percent, to 13,701.53
* Nine of the TSX's 10 main groups were up
By Solarina Ho
TORONTO, Sept 16 (Reuters) - Canada's main stock index
rallied on Wednesday, led by a nearly 5 percent surge in energy
stocks and broad gains in most other key sectors including the
hefty financials group.
Oil and gas names jumped 4.8 percent, moving in step with
U.S. crude prices, which rose some 5.6 percent late in the
morning on a drawdown in U.S. stockpiles, higher gasoline prices
and inflation data that dampened the chances of an interest rate
hike by the Federal Reserve this week.
"There's a sense that the Fed won't increase rates tomorrow.
We'll have to see if that's the case," said Ian Nakamoto,
director of research at MacDougall, MacDougall & MacTier.
"If that's the mentality, then the U.S. dollar may come off
a bit more and commodities may rally some more. I don't know how
sustainable that is, but that seems to be what's going on
currently."
The most influential positive movers on the index were
Suncor Energy Inc SU.TO , which bounced 3.8 percent to C$34.68,
and Canadian Natural Resources CNQ.TO , which jumped 5.3
percent to C$27.72.
The financials group, including Canada's largest banks and
which have great exposure to the energy sector, climbed more
than 1.4 percent.
Royal Bank of Canada RY.TO rose 1.3 percent to C$74.13,
and Toronto Dominion Bank TD.TO advanced 1.3 percent to
C$52.78.
At 11:25 a.m. EDT (1525 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE rose 238.82 points, or 1.77
percent, to 13,701.53.
Nine of the index's 10 main groups were in positive
territory.
The materials group jumped 3.3 percent. Combined with
financials and energy, the three sectors make up roughly
two-thirds of the index's weight.
Advancing issues outnumbered declining ones on the TSX by
232 to 13, for a 17.85-to-1 ratio on the upside.