CANADA STOCKS-Stronger commodities drive TSX higher

Tue Jun 16, 2009 10:33am EDT
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* Toronto index rises 1.32 percent to 10,532.22

* Energy, materials shares rise with commodities prices

* Air Canada shares up 13.8 percent (Adds details, quote)

By Jennifer Kwan

TORONTO, June 16 (Reuters) - Toronto's main stock index was firmly in the black on Tuesday morning as commodity prices rose on a weaker U.S. dollar, lighting a fire under the resource-laden stock market after it fell sharply the previous session.

The market sectors that were hit hardest in Monday's 2.4 percent selloff rebounded on Tuesday as the U.S. dollar sank after comments from Russia suggested a need for a global reserve currency other than the greenback [ID:nN16351801].

The dollar's weakness helped to push the price of oil CLc1 above $72 a barrel, while gold and base metals prices also rose.

The TSX index's energy sector climbed 1.5 percent, while its mining-heavy materials group rose 2.2 percent. Oil company Canadian Natural Resources (CNQ.TO: Quote) was up 1 percent at C$63.04, and miner Goldcorp (G.TO: Quote) climbed 3.4 percent to C$39.62.

Economic reports, particularly U.S. housing and permits data, also supported the market, said Steve Ibel, institutional equities trader at Beacon Securities in Halifax, Nova Scotia.   Continued...