3 Min Read
* TSX gains 2.3 percent to 10,215.46
* Rising commodity prices lift resources
* Intel results boost optimism (Adds details and comments)
By Ka Yan Ng
TORONTO, July 15 (Reuters) - Toronto's main stock index rallied more than 2 percent on Wednesday to close at its highest level in more than a week, powered by firmer commodity prices and new-found optimism about second-quarter earnings.
The resource-heavy index shot higher at the start of the session and maintained the gains throughout, supported by a rise in oil prices to near $62 a barrel, while gold jumped to a two-week high above $940 an ounce. [ID:nSP476597] [ID:nLF598658]
"It looks like commodities are romping up a storm today," said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc in Vancouver.
Strong results from U.S. bellwether Intel Corp (INTC.O) bolstered hopes that overall second-quarter corporate results will support economic recovery [ID:nN15335023], superseding Canadian data that showed factory sales tumbled to their lowest level in nearly 11 years in May. [ID:nN15446129]
"Intel certainly has rekindled some investor optimism. I think some of the investors are probably breaking out the bubbly right now. It may be a little premature for that," said Mastracci.
The Intel news came on the heels of better than expected results from Goldman Sachs (GS.N) and a bullish forecast by a prominent U.S. banking analyst, all of which have contributed to a substantial stock market rally this week.
The S&P/TSX composite index .GSPTSE is up 4.7 percent on the week so far. It closed up 229.31 points, or 2.3 percent, at 10,215.46 on Wednesday. Nine of the index's 10 main groups were higher.
The index's materials group rose 3.03 percent, while the energy sector gained 2.53 percent. Financials also provided a big lift, up 2.6 percent.
Insurer Manulife (MFC.TO) was the TSX's biggest heavyweight gainer, up 5.5 percent at C$21.56. All Canadian banks were also higher.
$1=$1.12 Canadian Additional reporting by Nina Lex; editing by Peter Galloway