UPDATE 1-Toronto stocks surge on Potash, oils, golds

Wed Apr 16, 2008 11:18am EDT
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TORONTO, April 16 (Reuters) - Toronto's main stock market index jumped to its highest level in more than four months on Wednesday as strong rises in gold and oil prices, and a key price agreement for Potash Corp POT.TO, pushed up the resource-laden market.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 159.51 points, or 1.2 percent, at 14,010.46, a level not seen since early January.

Eight of the TSX index's 10 main groups were higher, with the commodities-heavy materials group up 2.8 percent and the heavily weighted financial group up 0.6 percent. The information technology group gained 1.2 percent.

"They came out of the gate pretty strong at the start. If we can sustain these gains throughout the day and maybe the next few days we might build a decent base to build a sustainable rally," said Bruce Latimer, a trader at Dundee Securities.

"Gold and oil are strong and that boded well."

Gold-mining shares benefited from a hefty jump in the price of bullion, which climbed more than 2 percent to $944.85 an ounce, boosted by the dollar's tumble to record lows against the euro following poor economic data from the United States.

All of the market's major gold miners gained ground, including Barrick Gold ABX.TO, the world's biggest producer, which climbed C$1.50 to C$45.90, and Agnico-Eagle Mines AEM.TO, which rose C$1.82 to C$75.69.

Materials shares were also posting significant gains, led by index heavyweight Potash Corp.   Continued...