CANADA STOCKS-TSX hits 2-week high as risk appetite returns

Mon Nov 9, 2009 5:03pm EST
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* TSX closes up 236.46 points at 11,486.88

* Big 3 sectors - oil, materials, banks - solidly higher

* G20 weekend meeting fuels investor optimism (Adds details, quote)

By Jennifer Kwan

TORONTO, Nov 9 (Reuters) - Toronto's main stock index rose to a two-week high on Monday after a pledge from the Group of 20 to pursue economic stimulus measures until recovery is in place encouraged investors to let go of the safe-haven U.S. dollar and embrace riskier assets.

Suncor Energy (SU.TO: Quote) rose 5.5 percent to C$37.35 to lead all heavyweight gainers, while Goldcorp (G.TO: Quote) advanced 4.6 percent to C$46.49.

Financial issues were also big contributors to the rally, with several banks among the index's top 10 gainers. Toronto-Dominion Bank (TD.TO: Quote) climbed 3.1 percent to C$66.59, and Royal Bank of Canada (RY.TO: Quote) rose 2.2 percent rise to C$56.44.

"The No. 1 driver was the weakness in the U.S. dollar. Everybody is marching to that drum," said Sal Masionis, stockbroker at Brant Securities.

The dollar fell to a 15-month low against a basket of major currencies on Monday after the Group of 20 finance ministers and central bankers said at the end of a weekend meeting in Scotland that while the global economy has improved, recovery is still uneven and depends on policy support, which they vowed to provide until recovery was assured. [ID:nLQ516726]   Continued...