TSX breaks 2-day slide on resources rush

Thu Jul 30, 2009 4:28pm EDT
 
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By Ka Yan Ng

TORONTO (Reuters) - A swift return to hopes of economic recovery and a rally in prices for key Canadian commodities helped push Toronto's main stock index higher by 2 percent on Thursday.

The TSX shot higher from the get-go and hardly looked back as all 10 sectors advanced strongly, allowing the overall market to make up nearly all of the last two days of declines.

Extra credit for the rally went to the energy and materials sectors, up 2.44 percent and 3.29 percent, respectively, as the price of oil and gold rebounded from recent pressure.

Oil jumped more than 5 percent toward $67 a barrel, while gold tracked oil's rise, as U.S. economic data sparked fresh optimism that the recession may be bottoming out.

Shares of Suncor Energy led all influential advancers, up 4.44 percent at C$34.80, while Canadian Natural Resources rose 3.56 percent to C$63.95.

Driving the TSX's mining-heavy materials sector were shares of Barrick Gold Corp, up 2.99 percent at C$36.82, while gold miner Agnico-Eagle rallied 7.44 percent to C$61.08. Both companies reported quarterly results that topped estimates.

"As long as economic indicators point upward and earnings are doing better than estimates, in general I think the market's got a lot of fire under it," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

The Toronto Stock Exchange's S&P/TSX composite index finished up 221.39 points, or 2.12 percent, at 10,676.72.

($1=$1.08 Canadian)

(Editing by Rob Wilson)