(Adds portfolio manager quotes, details on U.S. dollar and
Bombardier, updates prices)
* TSX ends up 150.76 points, or 1.21 percent, at 12,593.02
* Seven of the TSX's 10 main groups were up
* Rona Inc RON.TO almost doubles after takeover deal
By Fergal Smith
TORONTO, Feb 3 (Reuters) - Canada's main stock index rose on
Wednesday as strength in commodity prices supported energy and
mining stocks, while shares in home retailer Rona Inc RON.TO
almost doubled after a generous takeover deal.
The index snapped a two-day losing streak, rebounding from a
one-week low earlier in the session as a weaker U.S. dollar
helped drive commodity markets higher.
"This is all U.S. dollar related," said Norman Levine,
managing director, Portfolio Management Corp.
Since resource markets are priced in U.S. dollars, a lower
U.S. dollar has a very positive effect on resource prices, he
added.
The dollar hit its lowest level against the euro since last
October on growing expectations for a slower pace of Federal
Reserve rate hikes this year.
Oil prices jumped 8 percent O/R , while gold rose to
three-month highs.
The energy group rallied 4.5 percent. It included a 3.8
percent gain for pipeline company Enbridge Inc ENB.TO to
C$47.87, while Canadian Natural Resources Ltd CNQ.TO was up
7.9 percent at C$29.94.
Gold miners were also among the most influential risers.
Barrick Gold Corp ABX.TO added 6.7 percent to C$14.77, while
Goldcorp Inc G.TO was up 8.2 percent at C$17.12.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 150.76 points, or 1.21 percent, at
12,593.02. Seven of the index's 10 main groups were in positive
territory.
Rona's stock jumped from below C$12 to C$23.30, just under
the C$24 per share in cash U.S. retailer Lowe's Cos Inc said it
would pay.
"This is one of the first companies that is now going to be
taken over by U.S. companies because our (Canadian) dollar is so
low," said Levine.
Jitters about global economic growth persisted, holding back
financial and industrial stocks.
Financial sector stocks rose less than 0.2 percent, while
industrials were nearly unchanged.
Canadian plane and train maker Bombardier
2.2 percent to $0.89. The company will soon announce plans for a
reverse stock split, two sources familiar with the matter said,
in order to remain a part of Canada's benchmark stock index.
Magna International Inc MG.TO fell 5.5 percent to C$44.95.