CANADA STOCKS-TSX rallies on commodities, earnings optimism

Tue Jan 11, 2011 10:47am EST
 
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 *TSX up 1.1 percent at 13,390.44
 *All 10 sectors stronger
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Jan 11 (Reuters) - Toronto's main stock index
bounced sharply higher on Tuesday morning, snapping its
five-day new year's losing streak as commodity prices rallied
and investor optimism was boosted by a solid start to the U.S.
earnings season.
 All 10 index sectors were stronger, led by the weighty
materials group, which was up 1.5 percent and helped by higher
copper and gold prices. [MET/L] [GOL/]
 Teck Resources TCKb.TO rallied 3 percent to C$62.35 and
Goldcorp Inc (G.TO: Quote) climbed 2.2 percent to C$43.57. Goldcorp,
Canada's No. 2 gold miner, said it was was eyeing stronger
production this year and over the next five years.
[ID:nN10268469]
 Fertilizer makers also edged higher after Desjardins raised
share-price targets for both Potash Corp (POT.TO: Quote), up 0.05
percent at C$164.82, and Agrium Inc (AGU.TO: Quote), up 1.2 percent at
C$91.21. [ID:nWNAB3711]
 "What we're looking at is a market that is focused on
improving economic conditions and stronger commodity prices,"
said Fred Ketchen, director of equity trading at ScotiaMcLeod.
 South of the border, Alcoa Inc (AA.N: Quote) posted a quarterly
profit that topped Wall Street's expectations, though revenue
missed analysts' average estimate slightly.  [.N]
 "After Alcoa reported last night ... people seem to be
satisfied, and as a result, we've had a number of people who
are raising their price targets on Alcoa ... and a number of
issues have had their price targets raised in various sectors,"
Ketchen said.
 The index's energy sector rose 1.3 percent as the price of
oil rose above $90 a barrel as a key Alaskan pipeline remained
shut. [O/R]
 Suncor Energy (SU.TO: Quote) rose 1 percent to C$37.21, and
Canadian Natural Resources (CNQ.TO: Quote) rose 1.3 percent to C$42.15
after the company said on Monday it may be able to resume
limited production at its Horizon oil sands project following a
fire last week.
 At 10:35 a.m. (1535 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 145.33 points, or 1.1
percent, at 13,390.44.
 Financials were 0.9 percent higher. Royal Bank of Canada
(RY.TO: Quote) shot up 1.7 percent to C$52.59, and Bank of Montreal
(BMO.TO: Quote) advanced 0.6 percent to C$58.40 after announcing it
will buy a Hong Kong-based wealth management firm as it looks
to boost its presence in Asia and emerging markets.
[ID:nSGE70A0AY]
 "We've got some recovery in the financial services side.
All of the banks are showing half decent gains so far today,"
Ketchen said. "They have not been participating in any kind of
strength over the last week or so and maybe for the first time
now this year our Toronto index may end the day ahead."
 ($1=$0.99 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)