April 20, 2011 / 2:49 PM / 6 years ago

CANADA STOCKS-Commodities, earnings push TSX to 1-week high

3 Min Read

* TSX up 180.29 points, 1.31 pct, at 13,917.12.

* All 10 sectors stronger (Updates with details, comments)

By Claire Sibonney

TORONTO, April 20 (Reuters) - Toronto's main stock index rose sharply on Wednesday morning, hitting a one-week high as commodity prices rallied and a raft of solid U.S. earnings and forecasts boosted optimism about economic recovery.

The Reuters-Jefferies CRB index .CRB, a global benchmark for commodities, was on track to its biggest gain in nearly two weeks on Wednesday as gold, oil and other resource prices rallied as the U.S. dollar fell.

The Toronto index's energy sector was up 1.7 percent as U.S. crude oil futures rose to near $110 a barrel as the rebound in global equities and the weakening U.S. dollar offset fears of eroding demand. [O/R]

Suncor Energy (SU.TO) jumped 2.3 percent to C$42.35 and Canadian Natural Resources (CNQ.TO) climbed almost 2 percent to C$44.05.

Market sentiment was also helped by solid corporate earnings in the United States as well as data that showed U.S. home resales rose more than expected in March. [.N]

"Last week we got off to a mixed start with earnings season, but it looks like we got some fairly strong reports yesterday and today, most notably a few bellwethers IBM, Intel and Freeport this morning," said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver.

Zohny said Freeport-McMoRan Copper and Gold (FCX.N), which rode a wave of high metal prices and lower mining costs to a big first-quarter profit, was a leading indicator for earnings for Canadian miners.

"In general, we're seeing fairly strong gains in the commodity space, we're seeing broad U.S. dollar weakness, which is helping lift commodity prices," he said.

The index's materials group shot up 1.9 percent as base-metals prices advanced and gold surged to a record high above $1,500 an ounce. [MET/L] [GOL/]

Diversified miner Teck Resources TCKb.TO rose 2.6 percent to C$52.97 and Barrick Gold Corp (ABX.TO) added 1.9 percent to C$52.74.

At 10:26 a.m. (1426 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 180.29 points, or 1.31 percent, at 13,917.12. All of its 10 sectors were stronger, including heavyweight financials, up 1 percent.

Royal Bank of Canada (RY.TO) firmed 0.7 percent to C$60.25 and Toronto-Dominion Bank (TD.TO) was up 1.6 percent at C$82.37.

Research In Motion RIM.TO rose 1.3 percent to C$51.52 after launching its PlayBook tablet computer on Tuesday. [ID:nN19146402]

$1=$0.95 Canadian Reporting by Claire Sibonney; editing by Peter Galloway

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