TORONTO (Reuters) - Rallying financial issues helped pull the Toronto Stock Exchange's main index strongly higher on Monday, amid increased confidence in the value of bank stocks and a rush of bargain-hunting. Monday was the first time in nearly four weeks that the TSX has marked two consecutive sessions of gains, while March has been punctuated by large triple-digit swings to both sides.
· TSX +244.08
· Dow +187.32
· Dollar -.53c to $ $98.24US
· Oil -.98c to close at $100.86 US per barrel
· Gold $4.19 to $923.79
Bond Rates: http://www.bankofcanada.ca/en/rates/bonds.html <http://www.bankofcanada.ca/en/rates/bonds.html>
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March 25, 2008
Malcolm Morrison
The Canadian Press
TORONTO
Stock markets surged yesterday after JPMorgan Chase & Co. boosted its offer for rival Bear Stearns to $10 US a share from $2.
Toronto's S&P/TSX composite index closed below its high for the day, but still finished the session 244.08 points higher at 13,019.72.
Led by the financials sector, the advance was broad based with commodity stocks on the mend after turning in sharp losses last week on worries about lower demand.
In New York, the Dow Jones industrials gained 187.32 points to 12,548.64 as the U.S. market also saw a rare bit of good news from the housing sector.
"Financials have had quite a run from last week, it's impressive,'' said Vincent Delisle, portfolio manager at Scotiabank in Montreal.
"I don't know if the Bear Stearns deal coincides with the bottom, certainly last week's (interest rate cut) from the Fed and the Bear Stearns deal at 10 bucks is a positive surprise (but) from where it was trading a few weeks ago, it's still devastating.''
The TSX Venture Exchange added 19.42 points to 2,481.75 while the Canadian dollar moved up 0.53 of a cent to 98.24 cents US, after losing 3.6 per cent last week to its lowest levels in two months, on falling commodities and a burst of strength in the American currency.
The Nasdaq composite rose 68.64 points to 2,326.75 while the S&P 500 index added 20.37 points to 1,349.88.
The original price for Bear Stearns was part of a deal struck last week at the urging of the Federal Reserve and Treasury Department. The new offering has the backing of the Fed.
As part of the support for the revamped JPMorgan Chase offer, the Federal Reserve Bank of New York's $30 billion US special financing initially linked to the transaction was changed so that JPMorgan will take on the first $1 billion US of any losses suffered by Bear Stearns.
Bear Stearns shares rocketed $4.86 or 76 per cent to $11.25 US while JPMorgan shares advanced 58 cents to $46.55. National Association of Realtors also said yesterday that sales of existing homes rose by 2.9 per cent in February, after falling for six straight months.
