CANADA STOCKS-TSX rallies on resource strength

Tue Jul 20, 2010 5:17pm EDT
 
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* TSX up 86.41 points, or 0.75 percent, at 11,629.88

* Materials lead TSX higher as commodities rise

* Seven of TSX's 10 main groups higher (Adds details, quote)

By Jennifer Kwan

TORONTO, July 20 (Reuters) - Toronto's main stock index ended higher on Tuesday as commodity prices rose on renewed optimism for China's economic strength, which helped boost the TSX's heavily weighted resource issues.

The TSX's materials sector, up 1.5 percent, led the rally [GOL/] [MET/L], with Barrick Gold ABX.TO up 0.7 percent at C$43.72, Potash Corp of Saskatchewan POT.TO up 1.6 percent at C$102.54 and Teck Resources TCKb.TO ahead 3.7 percent at C$34.31.

Market observers said the TSX was influenced by the strength in the Shanghai composite index .SSEC, which rose 2 percent to its highest close in three weeks, buoyed by property stocks, as investors gained confidence that Beijing's property policy would hold steady for the rest of the year after a series of tightening steps. [MKTS/GLOB]

"That's very positive for commodity markets and, by extension, the TSX composite," said Fergal Smith, managing market strategist at Action Economics.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE finished the day up 86.41 points, or 0.75 percent, at 11,629.88, with seven of its 10 main groups higher.   Continued...