July 9, 2009 / 9:07 PM / 10 years ago

CANADA STOCKS-Rising commodities help TSX snap 3-day skid

* TSX up 1.25 percent at 9,773.92

* Energy, materials sectors push higher

* Alcoa results help lift sentiment (Adds details, quotes)

By Ka Yan Ng

TORONTO, July 9 (Reuters)- Toronto’s main stock index snapped a three-session skid on Thursday, finishing more than 1 percent higher as a rise in commodity prices gave a boost to the resource-heavy market.

Forecast-beating results from U.S. bellwether Alcoa (AA.N) helped lift market sentiment early in the day, with the upbeat mood spreading to key commodity prices such as gold and oil.

The aluminum giant kicked off the U.S. earnings season by reporting a third consecutive quarterly loss, but it beat estimates by a large margin due to cost cuts. [ID:nN08471164]

“That certainly started the market out quite strong. Their loss being less than expected was a big boost, which probably fed through to oil and other commodities too,” said Michael Sprung, president of Sprung & Co Investment Counsel.

“People were taking that as a sign of ... things not being as bad as feared.”

The S&P/TSX composite index .GSPTSE finished up 120.47 points, or 1.25 percent, at 9,773.92. Eight of its 10 main groups were higher.

The energy sector rose 2.6 percent as the price of oil jumped above $60 a barrel. EnCana (ECA.TO) shares climbed 2.1 percent to C$53.24, while Suncor Energy (SU.TO) gained 2.8 percent to C$31.30.

The materials sector rose 1.87 percent, as Potash Corp of Saskatchewan Inc POT.TO, the most influential mover higher, gained 3.24 percent to C$108.80.

$1=$1.16 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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