Canadian Stocks Gain, Led by Banks, Research In Motion, EnCana

By John Kipphoff

Sept. 8 (Bloomberg) -- Canadian stocks rose the most in eight days, led by banks, as the U.S. takeover of Fannie Mae and Freddie Mac spurred optimism markets can recover from more than $500 billion in mortgage losses.

Toronto-Dominion Bank paced the advance among financial shares. Research In Motion Ltd. climbed on an analyst upgrade and speculation that the U.S.'s actions will help stem job losses at banks, among the biggest users of the company's BlackBerry e-mail phones. EnCana Corp. and Barrick Gold Corp. advanced along with crude-oil and metals prices.

The Standard & Poor's/TSX Composite Index jumped 1.7 percent to 13,034.72, the most since Aug. 27. The Canadian equity benchmark rebounded from a 6.9 percent decline last week, its worst weekly drop in eight years.

Toronto-Dominion Bank, Canada's second-biggest lender by assets, gained 4.7 percent to C$63.78. Smaller rival Canadian Imperial Bank of Commerce rose 4.9 percent to C$65.34.

Research In Motion rose C$2.25 to C$115.83. The BlackBerry maker was raised to ``outperform'' from ``market perform'' by Morgan Keegan & Co. analyst Tavis McCourt, who cited the stock's improved risk-reward ratio following a decline in the share price and before new products are offered in the next few months.

Oil rose from a five-month low as Hurricane Ike swept across Cuba, delaying the resumption of crude production in the Gulf of Mexico.

Metal and grain prices also gained, after the Fannie Mae and Freddie Mac takeover bolstered investor confidence in the outlook for the global economy.

EnCana, Canada's biggest energy company by market value, added 0.8 percent to C$72.40. Barrick Gold, the largest bullion mining company, added 1.7 percent to C$33.13.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.