July 13, 2010 / 2:55 PM / 9 years ago

CANADA STOCKS-TSX rallies on strength in commodities

*TSX up 104.02 points at 11,669.78

*Resources lead index higher (Updates with details, commentary)

By Claire Sibonney

TORONTO, July 13 (Reuters) - Toronto’s main stock index shot higher on Tuesday morning as commodity prices rose and drove up weighty resource shares.

The Thomson Reuters-Jefferies CRB index .CRB, a global benchmark of 19 different commodities including metals, was up more than 1 percent, and the index’s materials group jumped 1.2 percent in reaction.

Base metals miner Teck Resources TCKb.TO rose 1.4 percent to C$34.91, while Barrick Gold Corp (ABX.TO) added 0.6 percent to C$45.46.

Powerhouse energy shares, up 1.2 percent, benefited as oil and natural gas prices rose.

Suncor Energy (SU.TO) added 1.1 percent to C$33.45, and EnCana Corp (ECA.TO) gained 0.8 percent to C$34.67.

“Commodities and hard assets are becoming the only store of value that many more sophisticated investors are looking to and Canada happens to have a lot of this type of stuff,” said Aaron Fennell, senior markets strategist at Lind-Waldock.

“Gold, crude oil, stuff that you have a fixed amount of, it can’t be inflated away, it’s needed by the rest of the world — and that’s the cornerstone of the whole commodity boom these days.”

He added that Canada is becoming more attractive in the commodity space because of its perceived safety and credibility at a time when world markets are worried by sovereign debt risks.

At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 104.02 points, or 0.9 percent, at 11,669.78. All of its 10 sectors were higher.

The financial sector advanced 0.7 percent.

Royal Bank of Canada (RY.TO), the country’s biggest lender, was up 0.8 percent at C$54.80 after its chief executive said the bank is on the lookout for acquisitions. [ID:nLDE66C174]

Gluskin Sheff + Associates (GS.TO) rose 0.8 percent to C$17.30, after the wealth manager said it sees a 90 percent increase in performance fees on a sequential basis and said it may pay a special dividend. [ID:nSGE66B0IW]

Also supporting the risk-on environment, better than expected quarterly results from Alcoa Inc (AA.N) and CSX Corp CSX.N late Monday gave a promising start to the earnings season, sparking a broad rally in the United States. [.N]

The market showed little reaction to data that showed strong demand from Canadian businesses and consumers triggered a surge in imports in May that outpaced exports, leading to a third consecutive monthly trade deficit. [ID:nN13232203]

$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Peter Galloway

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