* TSX gains 0.93 percent to 11,672.84.
* All 10 sectors rise; 6 post gains of at least 0.9 pct (Updates with details, commentary)
By Ka Yan Ng
TORONTO, July 13 (Reuters) - Toronto stocks rallied on Tuesday as heavyweight resource issues, supported by firm commodity prices and renewed optimism over the global economic recovery, helped the main index touch a two-week high.
U.S. earnings season got under way on Monday with Alcoa Inc’s (AA.N) better than expected quarterly profit and outlook, which is often seen as a bellwether of the U.S. economy. The results helped to lift U.S. stock indexes as well. [ID:nN13242453] [.N]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE climbed 107.08 points, or 0.93 percent, to 11,672.84. Earlier, it had reached its highest level since June 28 at 11,695.56.
All of the index’s 10 main sectors were higher, with six groups up at least 0.9 percent.
John Ing, president of Maison Placements Canada, said some of the earnings reports have given the market a much better tone following a recent decline triggered by fears the global economy could fall back into recession, though he was cautious about the move higher.
“It’s coming with lower volume, so it’s not necessarily happy days are here again,” he said.
The infotech group climbed 2.47 percent, mostly on BlackBerry maker Research In Motion RIM.TO, which was among one of the most influential advancers on Tuesday. RIM was up nearly 3 percent at C$57.49 in a session where shares of rival Apple Inc (AAPL.O) slid after a poor review for its iPhone 4 from an influential consumer guide. [ID:nN13254388]
Ing also pointed to news that RIM has been granted approval for a common share repurchase program. [ID:nWNAB5061
Financials, which are often a play on the broader economy, posted a 1.31 percent rise. Bank of Nova Scotia (BNS.TO) climbed 2.77 percent to C$52.
Commodities were also influential, as the Thomson Reuters-Jefferies CRB index .CRB, a global benchmark of 19 different commodities including metals, was up more than 1 percent. Energy gained 0.97 percent and materials were up 0.27 percent in response.
Imperial Oil (IMO.TO) was up 1.6 percent at C$39.94, while Teck Resources TCKb.TO climbed 1.34 percent to C$34.89.
“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.”
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, he added.
Shares of Ivanhoe Mines (IVN.TO) jumped 14 percent to C$17.07 after the company said it told Rio Tinto it planned to terminate a clause in an October 2007 agreement between the two companies that restricts Ivanhoe from issuing shares to other strategic investors.
Alimentation Couche-Tard Inc (ATDb.TO), the big convenience store operator, rose 3.2 percent as quarterly earnings surged 81 percent on higher gasoline margins and strong sales growth. [ID:nN12186154]
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 Additional reporting by Claire Sibonney; editing by Rob Wilson