CANADA STOCKS-TSX surges on central bank optimism, Potash

Thu Jul 23, 2009 4:51pm EDT
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* TSX ends up 2.33 percent at 10,675.68

* Bank of Canada says recession ends this quarter

* Canpotex deal spurs Potash Corp shares 7 pct higher

* Financials up 2.83 percent on economic outlook (Adds details, quote)

By Ka Yan Ng

TORONTO, July 23 (Reuters) - A declaration by the Bank of Canada that the country's recession is almost over helped propel Toronto's main stock index to its highest level in nearly six weeks on Thursday.

The central bank said Canada will pull out of recession during this quarter and also that the world economy has likely averted a worst-case scenario and is bottoming out. [ID:nN23196742]

Firm oil and metals prices also encouraged big gains in the index's resource sectors, with the energy group advancing 2.94 percent and the materials group rising 2.25 percent.

Top gainer Potash Corp POT.TO shot 7.27 percent higher to C$104.59 as the fertilizer producer announced that Canpotex, the marketing unit for Potash, Mosaic Co MOS.N and Agrium Inc AGU.TO, will sell potash to India at $460 a tonne.   Continued...