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Toronto stocks rise in bargain-hunting rally

TORONTO (Reuters) - The Toronto Stock Exchange's main index rose for a second day yesterday, overcoming a rocky start on a bargain-hunting rally in hard-hit resource shares.

Among the big gainers, fertilizer producer Potash Corp of Saskatchewan was up 5.5 percent at C$162.00, and oil company EnCana was up 3 percent at C$70.82. Overall, the market's energy group ended up 1.4 percent, and the materials sector rose 0.6 percent.

The financial sector pushed up 0.5 percent after falling early in the day on fears for the future of US investment bank Lehman Brothers.

A report later in the day by the Wall Street Journal said Bank of America is in talks to buy Lehman.

Bank of Montreal was up 1 percent at C$49.06, and Royal Bank of Canada rose 0.9 percent to C$49.96.

The S&P/TSX composite index closed up 115.61 points, or 0.93 percent, at 12,612.76 with nine out of its 10 sectors on the upside.

The technology sector also fared well with shares of Research In Motion rising on news of a number of deals to add consumer-related products to its BlackBerry smartphones.

RIM was up 4.9 percent at C$117.88. The tech sector rose 2.5 percent.