CANADA STOCKS-TSX touches 2009 high as commodities rally

Wed May 20, 2009 11:23am EDT
 
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* TSX index hits new 2009 high of 10,365.39

* Energy, materials lead rally (Adds details, quote)

By Jennifer Kwan

TORONTO, May 20 (Reuters) - Toronto's main stock market rallied more than 2 percent on Wednesday morning to a new 2009 high as rising oil and gold prices lifted the resource-laden market.

The mining-heavy materials group, up 3.4 percent, led the rally as the price of gold hit an eight-week high amid a slide in the U.S. dollar, and as oil CLc1 rose above $60 a barrel to a six-month high. [ID:nLK309625]

Shares of gold miner Goldcorp G.TO rose 4.2 percent to C$41.33, while Barrick Gold ABX.TO climbed 3.9 percent to C$40.85. EnCana ECA.TO added 2.8 percent to C$63.32.

"For the time being, markets seem to be shrugging off what little bad news seems to be out there right now," said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia.

"Part of it is people don't want to miss a commodities run because commodities (strength) often precedes a market recovery."

Markets largely ignored data that showed Japan's economy shrank at a record pace in the first quarter. [ID:nSP468900]   Continued...