CANADA STOCKS-TSX sustains rally, boosted by Fed measures
* TSX up 159.39 points, or 1.29 percent, at 12,519.55 * Energy up 2.38 percent, materials up 2.93 percent * Seven of 10 sectors higher By Solarina Ho TORONTO, Sept 14 (Reuters) - Canada's main stock index rose more than 1 percent on Friday in a broad, resource-led rally on higher commodity prices following a long-awaited stimulus program launched by the U.S. Federal Reserve. The TSX extended Thursday's 1 percent rally, with traders inspired by the Fed's promise to pump $40 billion into the U.S. economy every month until the country's weak labor market turns around and as long as inflation remains contained. Resource stocks were buoyed by investors returning to riskier assets. Stronger commodity prices translated to a 2.38 percent gain in energy stocks and a 2.93 percent rise in materials. Suncor Energy was the most influential gainer on the index, rising 3.86 percent to C$34.46. Canadian Natural Resources was up 3.11 percent at C$33.84, while Teck Resources rose 6.27 percent to C$33.41. U.S. crude prices were set to finish the week up 3 percent on hopes of stronger global demand for oil following the Fed's aggressive move. Copper prices jumped to 4-1/2-month highs as investors hoped the stimulus would boost demand for industrial metals, while gold prices touched a six-month high. "The markets responded well yesterday and they're still responding well today," said Pat McHugh, Canadian equity strategist at Manulife Asset Management. At 11:27 a.m. (1527 GMT), the Toronto Stock Exchange's S&P/TSX composite index climbed 159.39 points, or 1.29 percent, to 12,519.55. Seven of the 10 main sectors were higher. Earlier in the session, the index hit a peak at 12,529.77, the highest since March 27, when it touched 12,603.71. Financial stocks, which make up nearly a third of the index's weight, were up 0.92 percent, led by Manulife Financial , which was 5.11 percent higher, at C$12.76. Health care, telecom and consumer staple stocks were in negative territory, down 0.48 percent, 1.42 percent, and 0.38 percent, respectively. BCE Inc shares were off 2.70 percent at C$42.19, while Valeant Pharmaceuticals International slipped 2.20 percent to C$55.59. "The traditionally defensive sectors, those were the ones that had been doing well prior to the announcement ... people are basically selling, taking profits in the few sectors that have made money," said McHugh. "People have been feeling that there has been a sea change. Whether that is in fact true remains to be seen ... from this point forward, for the market to go up we're going to need something on the earning side."
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