Market News: After the Bell




RTGAM






A run-up in commodity prices and enthusiasm surrounding the massive bailout of U.S. banking giant Citigroup pushed North American stocks to a solidly positive close Monday.

The S&P/TSX closed up 3.50 per cent, or 285.48 points, to 8,440.87. In the United States, the Dow Jones industrial average gained 4.93 per cent, or 396.97 points, to 8,443.39 while the broader S&P 500 gained 6.47 per cent, or 51.78 points, to 851.81.

The energy sector led the gains in Toronto, ending the day 7.42 per cent higher as oil gained 9 per cent, or $4.57, to close at $54.50 on the New York Mercantile Exchange.

Canada's financial sector also posted a strong day, up 5.4 per cent even as Royal Bank of Canada warned that its profit would fall by 15 per cent in the fourth quarter because of exposure to the global financial crisis.

The bullishness on banks was felt around the world, with news that the U.S. government would backstop losses at Citigroup pushing European markets to record highs. The government agreed to shoulder potential losses from $306-billion in risky assets, as well as providing $20-billion in new capital. Shares of Citigroup shot up as much as 72 per cent.

Copyright 2001 The Globe and Mail