CORRECTED - CANADA STOCKS-TSX opens higher on commodity prices

Tue Feb 10, 2009 12:06pm EST
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(Corrects earlier report to fix first bullet to read materials group rose 3 percent on commodity prices, not TSX)

* Materials rise 3 pct on commodity prices

* Energy sector up 0.8 percent as oil climbs

* Caution over U.S. bank plan keeps gains in check (Adds details, quote)

TORONTO, Feb 10 (Reuters) - Toronto's main stock index was higher on Tuesday morning as rising commodity prices boosted resource issues, but caution over a White House plan to deal with ailing U.S. banks held back the big financial services sector.

The resource-laden materials group led the benchmark index higher, rising 3 percent, helped by climbing gold prices.

The oil and gas sector rose 0.8 percent as oil CLc1 rose nearly $2 to above $41 a barrel on hope that approval of the U.S. stimulus package will aid the economy and quell demand concerns. [ID:nSYD426207]

Heavily weighted stocks on the upside included miners Barrick Gold (ABX.TO: Quote), up 2.8 percent at C$47.10, and Goldcorp (G.TO: Quote), up 3.3 percent at C$37.26. Oil company Suncor Energy (SU.TO: Quote) rose 2.1 percent to C$26.60.

Despite the rise, the market was cautious ahead of details to be released later in the day on a U.S. plan to deal with the ailing banking sector, said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.   Continued...