CANADA STOCKS-Resource rally fuels TSX to 28-month high

Tue Jan 18, 2011 4:32pm EST
 
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   * TSX ends up 0.89 percent at 13,559.20.
 * Nine sectors advance, oil and materials lead way
 * BoC leaves rates steady, signals extended pause
 (Updates to close)
 TORONTO, Jan 18 (Reuters) - Toronto's main stock index shot
to its highest point since early September 2008 on Tuesday,
fueled by rallying resource issues as most commodity prices
firmed, while financials were buoyed by the Bank of Canada's
decision to hold interest rates steady.
 The top gainers were mainly resource issues, which drew
support from firmer prices for gold, silver, copper and
palladium. The materials and oil and gas groups each posted
advances greater than 1 percent. [GOL/] [MET/L]
 "Some of this is on the tailwind of a weaker U.S. dollar,
stronger commodity prices, and this is helping the Canadian
equity markets," said John Kurgan, senior market strategist at
Lind-Waldock.
 Teck Resources TCKb.TO climbed 3 percent to C$63.84,
while Barrick Gold Corp (ABX.TO: Quote) advanced 1.98 percent to
C$47.81. Suncor Energy (SU.TO: Quote) rose 1.57 percent to C$38.79,
and Canadian Natural Resources climbed 1.78 percent to
C$42.40.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished up 119.09 points, or 0.89 percent, at
13,559.20. Nine of its 10 main sectors were higher, but
telecoms were unchanged.
 Financials added 0.31 percent, boosted by the outlook for
continued low interest rates after the central bank kept its
overnight target at 1 percent on Tuesday, as expected.
[ID:nN18290983]
 "The Bank of Canada indicating that they aren't going to
change interest rates for the time being is being taken as good
news," said Michael Sprung, president of Sprung & Co.
Investment Counsel. "The banks are happy with that, so that
should help their net interest margin a little bit here."
 Royal Bank of Canada (RY.TO: Quote) rose 0.3 percent to C$54.13,
while Bank of Montreal gained 0.39 percent at C$59.68.
 Toronto-Dominion Bank (TD.TO: Quote) gained 0.55 percent to
C$76.52, aided by a rise in quarterly profit at U.S. brokerage
TD Ameritrade Holding Corp (AMTD.O: Quote), in which TD has a 46
percent stake.  [ID:nN16244192]
 ($1=$0.99 Canadian)
 (Reporting by Ka Yan Ng and Claire Sibonney; editing by Rob
Wilson)