October 5, 2010 / 9:08 PM / 8 years ago

CANADA STOCKS-TSX hits 2-year high as commodities surge

   * TSX up 175.06 points, or 1.42 percent, at 12,498.00
 * Highest finish since Sept. 26, 2008
 * All 10 of TSX’s main sectors were higher  (Adds details, quote)
 TORONTO, Oct 5 (Reuters) - Toronto’s main stock index had its highest finish in more than two years on Tuesday as commodity prices surged on expectations the U.S. Federal Reserve would follow in the footsteps of the Bank of Japan and take steps to stimulate the economy.
 “The real highlight is materials stocks, especially gold stocks,” said Jean-Francois Dion, vice president and portfolio advisor of Canadian Equities at RBC Dominion Securities.
 “A lot of anticipation around the quantitative easing program coming from the Fed at its next meeting — that’s putting pressure on the U.S. dollar, really helping gold and metals.”
 The S&P/TSX composite index .GSPTSE finished up 175.06 points, or 1.42 percent, at 12,498.00, it highest close since Sept. 26, 2008.
 The index’s key materials sector rose 2.3 percent, driven by a strong showing from base-metals miners including Teck Resources Ltd TCKb.TO, which jumped 4.1 percent to C$44.06, and Inmet Mining Corp IMN.TO, which was up 3.3 percent at C$58.72.
 Gold miners, buoyed by record bullion prices, were also higher. Barrick Gold Corp (ABX.TO) rose 2.3 percent to C$48.18, and Kinross Gold Corp (K.TO) climbed 2.7 percent to C$19.79.
  Bullion surged to record levels and copper hit two-year peaks after the Bank of Japan’s pledge on Tuesday to keep credit easy stoked expectations the Fed would do the same, weakening the greenback.
 Investors often shift toward the precious metals as a safe haven and hedge against inflation.
 ($1=$1.02 Canadian)  (Reporting by Solarina Ho; editing by Peter Galloway)                                         

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