August 4, 2009 / 2:33 PM / 10 years ago

CANADA STOCKS-Resources boost TSX as market plays catch-up

* Stocks play catch-up after Monday holiday in Canada

* TSX gains 1.5 percent to 10,948.49

* Energy, materials sectors each rise more than 2 percent (Adds details)

By Ka Yan Ng

TORONTO, Aug 4 (Reuters) - Toronto’s main stock index shot higher on Tuesday morning, led up by commodity-based stocks and playing catch-up with strength on world stock markets after Monday’s holiday in Canada.

Sliding oil and metal prices had little effect on the resource-heavy market and big names in the index’s materials and energy sectors advanced strongly.

The energy group rose 2.5 percent, while the materials group gained 2.4 percent. Top heavyweight advancers included oil producers Suncor Energy (SU.TO), up 4.25 percent at C$36.32, and Petro-Canada PCA.TO, up 4.32 percent to C$46.41.

Other strong gainers were fertilizer producer Potash Corp POT.TO, up 2.6 percent at C$102.97, and oil company Canadian Natural Resources (CNQ.TO), up 3.7 percent at C$67.14.

Suncor, which completed its C$22.5 billion acquisition of Petro-Canada on Saturday, said on Monday the deal was expected to reduce annual capital expenditures by C$1 billion. [ID:nBNG462020]

Shares of Suncor jumped nearly 8 percent on Monday in its first day of trading in New York as a new entity after the acquisition of Petro-Canada. Its new TSX-listed shares start trading on Aug. 7. [ID:nN03369753]

“A lot of these names are interlisted and had a big day in the U.S. market yesterday and they’re really playing catch-up right now. We have some pretty good strength across the board,” said Bruce Latimer, a trader at Dundee Securities.

At 10:15 a.m. (1410 GMT), the S&P/TSX composite index .GSPTSE was up 150.65 points, or 1.4 percent, at 10,937.80. Nine of its 10 sectors were higher, including a 1 percent climb in the heavily weighted financial group.

Blackmont Capital raised its price targets on six Canadian banks, and maintained a cautious outlook for credit in the near term, and for bank equity valuations in the medium term. [ID:nBNG517269]

Canadian markets were closed on Monday for the Civic Holiday, a day during which global stocks surged to a nine-month high as improved economic data from the United States and China spurred appetite for risk.

$1=$1.07 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

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