By Steve Gelsi
Oil service shares led big gains in the energy sector Monday as the two major Canadian energy providers announced a multibillion-dollar deal and as the sector followed the broad market higher.
Sector leader Exxon Mobil (XOM) rose more than 4% to $68.98. Chevron (CVX) rose nearly 5% to $67.89. Both oil majors are among the 30 stocks in the Dow Jones Industrial Average, which rallied 300 points on the new U.S. plan to address toxic debt held by banks.
Petro-Canada (PCZ) jumped 25% to $29.96 after Suncor offered to buy the company in an all-stock deal valued at $15 billion plus $3 billion in debt.
It's the largest deal in the energy sector since the creation of Statoil Hydro (STO) in 2006. Suncor shares dipped 5 cents to $25.23.
Sector leader Exxon Mobil rose more than 4% to $68.98. Chevron rose nearly 5% to $67.89. Both oil majors are among the 30 stocks in the Dow Jones Industrial Average , which jumped about 300 points.
The Philadelphia Oil Service Index (OSXX) vaulted 7.3% to 137. Nabors Industries (NBR) led the gauge, rallying 11.5% to $11.52.
The Amex Natural Gas Index (XNG) advanced 6.2% to 380, with component Chesapeake Energy (CHK) rising 9% to $19.26.
The Amex Oil Index (XNG) rose 5% to 900. Marathon Oil (MRO) jumped 8% to $26.22.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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