TORONTO, July 7 (Reuters) - Toronto's main stock index rallied for a second day on Wednesday as a rebound in oil prices and a deal by Total SA (TOTF.PA) to buy UTS Energy Corp (UTS.TO) boosted prospects for the powerhouse energy sector.
French oil major Total agreed to buy UTS for C$1.5 billion ($1.42 billion) in cash, twice the amount it offered for the Canadian oil sands developer 18 months ago. [ID:nSGE66609U]. The news boosted UTS shares 65 percent to C$3.47.
As well, U.S. crude oil futures bounced higher, sending the energy group up 1.8 percent. Suncor Energy (SU.TO), the country's biggest oil company, rose 2.5 percent to C$32.00 while natural gas major EnCana Corp (ECA.TO) added 1.8 percent to C$32.93. [O/R]
The base-metal mining subsector gained shot up 4.3 percent while financials edged 0.7 percent higher.
Teck Resources (TCKb.TO) jumped 4.3 percent to C$33.05 while Bank of Montreal (BMO.TO) rose 1 percent to C$59.15.
"Just a little bit of a relief rally after we've had such a negative tone for a while," said Paul Taylor, chief investment officer at BMO Harris Investment Management.
"I think a lot of investors are doing some bottom-fishing here with some valuations that have come back significantly."
At 11 a.m. (1500 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 106.26 points, almost 1 percent, at 11,306.43. Nine of the 10 sectors were higher. Healthcare stocks fell 0.2 percent.
Worries about a Europe-wide stress test for banks were also in focus as a European committee of bank supervisors was set to outline a methodology for stress tests of about 100 banks. [ID:nLDE6660SG]
($1=$1.05 Canadian) (Reporting by Claire Sibonney; editing by Rob Wilson)
