3 Min Read
* TSX rises 80.32 points to 13,333.95
* All 10 main sectors stronger (Updates with details, commentary)
By Claire Sibonney
TORONTO, Jan 26 (Reuters) - Toronto's main stock index rallied broadly on Wednesday, led by key resource sectors after a promise of spending cuts from U.S. President Barack Obama hardened views the Federal Reserve will maintain its ultra-loose policy.
In the aftermath of Obama's State of the Union address the U.S. dollar softened and commodity prices strengthened, as investors expected the Fed to sound optimistic even as it reaffirms its plan to buy $600 billion in Treasuries in a announcement due around 2:15 p.m. (1915 GMT). [ID:nN2539641] [MKTS/GLOB] [FEDAHEAD]
The materials sector advanced almost 1 percent after the price of base metals and gold firmed. Energy shares, up 0.8 percent, also contributed as the price of oil benefited from the focus on positive economic prospects. [MET/L] [GOL/] [O/R]
At 10:18 a.m. (1518 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 80.32 points, or 0.6 percent, at 13,333.95. All 10 sectors were stronger, including financials, up 0.1 percent.
Among the biggest gainers, First Quantum Minerals (FM.TO) surged 5 percent to C$117.51, Barrick Gold Corp (ABX.TO) added 0.3 percent to C$46.08 and Suncor Energy (SU.TO) advanced 1.6 percent to C$38.21.
"In general, it was a very upbeat speech and all of that seems to point to a stronger economy in the Unites States going forward," said John Kurgan, senior market strategist at commodity futures brokerage Lind-Waldock, a division of MF Global.
Also lifting market sentiment on both sides of the border was data showing new U.S. single-family home sales in December rose to their highest level in eight months and prices were the highest since April 2008. [ID:nN26138186]
In individual company news, Canadian Pacific Railway (CP.TO) rose 1.9 percent to C$67.60 after reporting a quarterly profit that topped analyst estimates. [ID:nSGE70O0EF]
Business services company CGI Group Inc (GIBa.TO) jumped 3.8 percent to C$19.44 after its first-quarter profit was boosted by new contracts and its Stanley Inc acquisition last year. [ID:nSGE70P066]
Shares of Metro Inc MRUa.TO fell 0.7 percent to C$43.30 after the grocer posted a lower first-quarter profit on Tuesday and its revenue fell short of forecasts as holiday-season competition pulled down food prices. [ID:nN25246122] (Reporting by Claire Sibonney; editing by Rob Wilson)