CANADA STOCKS-TSX ends 1 pct higher on resource rally

Mon Jan 4, 2010 4:41pm EST
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* TSX gains 0.79 percent to 11,838.79

* Commodities price gains drive rally

* Manufacturing activity in major economies rises

By Ka Yan Ng

TORONTO, Jan 4 (Reuters) - Toronto's main stock market closed more than 1 percent higher on Monday, backed by soaring oil and gold prices and global manufacturing data that suggested more improvement in the world economy.

Eight of the top 10 heavyweight advancers were resource-based stocks, including oil companies Suncor Energy SU.TO and EnCana Corp ECA.TO, as oil prices soared above $81 a barrel, and the price of gold and other precious metals also rallied.

Overall, the index's energy group rose 2.29 percent, while its mining-heavy materials sector climbed 2.55 percent. [O/R] [GOL/]

Suncor was the biggest heavyweight riser, up 2.9 percent to C$38.30, while EnCana shot up 4.7 percent to C$35.71. Diversified miner Teck Resources TCKb.TO rallied 5.95 percent to C$39.01, while Barrick Gold ABX.TO rose 1.5 percent to C$42.08.

Manufacturing data from major economies reinforced evidence that a global recovery was in motion. Chinese manufacturing grew at its fastest pace on record in December, while U.S. factories marked their best month in nearly four years. Other data showed strength in British and euro zone factory production growth. [ID:nSGE60301H]   Continued...