Global Financial Markets: Investment Markets Services

TORONTO — The Toronto Stock Exchange’s main index was up 5% in early afternoon trade on Monday as oil and metals prices climbed and as optimism rose that global stimulus measures would avert a deeper slide in the economy.

Heavily weighted stocks that propelled the market higher included oil company EnCana Corp (T.ECA) up 8.7% at $55.26, and miner Barrick Gold (T.ABX) up 5.4% at $33.79.

Toronto stocks followed equities around the world higher with investors focusing on a possible rescue plan for U.S. automakers, a proposed U.S. jobs plan and more government stimulus measures to try to reverse the economic malaise.

U.S. President-elect Barack Obama unveiled stimulus plans at the weekend that featured the largest U.S. infrastructure program since the 1950s and the creation of 2.5- million jobs.

In China and Europe, leaders were set to plot next steps on Monday, while stimulus measures already presented, planned or pending helped push stock markets higher.

“Between those things that’s enough to give cause for investors to step in,” said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.

“There is unprecedented amounts of money on the sidelines and this market is waiting for a reason to get into the market.”

At around 12:45 p.m. ET (1745 GMT), the S&P/TSX composite index was up 394.70 points or 5% at 8,511.73.

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