September 15, 2009 / 9:24 PM / in 8 years

CANADA STOCKS-TSX hits 2009 high on commodity rally, U.S. data

* TSX gains 1.45 percent to 11,495.83

* Mining, energy and financial sectors all rally

* Commodity prices, U.S. data provide boost (Adds analyst comment, stock quotes)

By Pav Jordan

TORONTO, Sept 15 (Reuters) - Toronto’s main stock index surged on Tuesday to its highest closing level of 2009, as a commodity price rally and firm U.S. data spurred gains in heavily weighted materials, energy and financial shares.

The S&P/TSX composite index .GSPTSE rose 163.79 points, or 1.45 percent, to 11,495.83, its highest close since Oct 1.

Six of the index’s 10 main groups advanced, led by a 2.53 percent gain in materials, which include gold miners, and a 2.08 percent climb in energy. The influential financials group was up 1.22 percent.

“Gold is up...back over $1,000 and that’s got all our gold stocks going again and from the other side oil is doing well and is back over $70 again. And the financials are even helping a little bit here,” said John Kinsey, portfolio manager at Caldwell Securities Ltd in Toronto.

“We’re kind of hitting on all three cylinders.”

Oil prices jumped 3 percent to top $71 a barrel on Tuesday after data showing gains in U.S. retail sales and producer prices outweighed concerns about growing U.S. distillate inventories. [O/R]

Leading stocks on Tuesday included oil companies Suncor Energy (SU.TO), up 3.5 percent at C$38.65, and Canadian Natural Resources (CNQ.TO), up 2.7 percent at C$73.04.

Investors in Canadian stocks also drew comfort from a report on U.S. retail sales, which advanced at their fastest clip in more than three years in August, and provided evidence that household spending was probably rising. [ID:nN15548319]

“People are looking through some of the challenges right now and thinking it is going to be better times ahead,” said Brian Pow, vice president and research and equity analyst at Acumen Capital Partners in Calgary.

Gold-mining issues rose as prices for the yellow metal held over $1,000 an ounce and some producers predicted it could go a lot higher. [GOL/]

Goldcorp (G.TO) was up 2.7 percent at C$45.44, while Kinross (K.TO) advanced 2.84 percent to C$24.60.

Financial stocks also topped the leader board, with stock in Bank of Nova Scotia (BNS.TO), Canada’s third-largest bank, jumping 3.85 percent to C$48.50 per share.

No. 2 bank Toronto Dominion (TD.TO) saw its shares rise 1.28 percent for the day to C$68.02 per share.

$1=$1.07 Canadian Editing by Jeffrey Hodgson

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