February 16, 2010 / 9:53 PM / 9 years ago

CANADA STOCKS-TSX gets lift from higher oil and gold prices

* TSX ends up 1.02 percent at 11,586.37

* Energy, materials lead index’s rise

* Gold miners may get additional boost on coming earnings

By Ka Yan Ng

TORONTO, Feb 16 (Reuters) - Toronto’s main stock market index rose to its highest level in more than three weeks on Tuesday as oil and gold prices soared, leading resource issues higher, and as risk appetite returned to the market.

Momentum from a strong overseas session, where worries about Greece’s debt woes were put on pause, carried into North American equity markets.

A weaker U.S. dollar served to boost the prices of oil and gold, both important Canadian exports, which in turn lifted heavily weighted energy producers and miners. [GOL/] [O/R]

“There was a very strong reversal in the (foreign exchange) world where the U.S. dollar is down...after being up for two straight weeks,” said Francis Campeau, broker at MF Global Canada, in Montreal.

“With the European market also way stronger, that’s all that was needed to ignite a strong rally in commodities and in stocks.”

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended 116.56 points, or 1.02 percent, higher at 11,586.37. Eight of the index’s 10 main groups were higher.

Shares of Suncor Energy Inc (SU.TO), Canada’s largest oil company, led all heavyweight risers, up 2.27 percent at C$31.55. Miner Goldcorp (G.TO) rose 1.9 percent to C$40.08.

Banks were also among winners in the broadly advancing market as Ottawa said it would bring in new mortgage rules to help cool a red-hot housing market. Bank of Montreal (BMO.TO) was up 1.2 percent at C$54.64. [ID:nN16214087]

More gains for Canada’s gold producers may be in store as many of them may report a sharp jump in fourth-quarter profit due to record-setting bullion prices, muted cost increases and recovering prices for base metals. Agnico Eagle (AEM.TO), Yamana (YRI.TO), Iamgold (IMG.TO) are set to report results on Wednesday. [ID:nN16234547]

$1=$1.04 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

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