August 18, 2009 / 8:42 PM / 9 years ago

CANADA STOCKS-TSX ends higher on commodities, optimism

* TSX up 142.25 points, or 1.35 percent, at 10,673.84

* Materials, energy groups lead climb

* RIM up 4.3 percent after RBC raises price target

* Investors shrug off unexpected dip in U.S. house starts (Adds official closing figures, details, quotes)

By Jennifer Kwan

TORONTO, Aug 18 (Reuters) - Toronto’s main stock index bounced higher on Tuesday as market sentiment brightened and rising commodity prices helped lift the resource-heavy index after Monday’s steep descent.

Rising gold and oil prices boosted the key materials and energy groups, up 1.8 percent and 1.9 percent respectively. [ID:nSIN440961]

“For the Canadian market it has a lot to do with materials, with the fact that gold is up a few dollars and then crude is also up a couple bucks. Any time those two go up our market does well,” said Jennifer Radman, vice-president and associate portfolio manager at Caldwell Investment Ltd.

Radman said the upbeat mood on Bay Street was helped by better than expected quarterly results from big U.S.-based retailers Home Depot (HD.N) and Target (TGT.N).

“It has a lot to do with sentiment,” she added.

Comments from Olivier Blanchard, chief economist at the International Monetary Fund also helped brighten the mood. Blanchard said in an article the global recovery has begun, though it will take time for the economic scars to heal. [ID:nN18299934]

The S&P/TSX composite index .GSPTSE finished the day up 142.25 points, or 1.35 percent, at 10,673.84, recovering some of Monday’s 2.9 percent tumble.

Key gainers included EnCana Corp (ECA.TO), ahead 2.7 percent at C$56.50, and Suncor Energy (SU.TO), up 1.5 percent at C$34.94.

Research In Motion Ltd RIM.TO RIMM.O rose 4.3 percent to C$81.49 after RBC Capital raised its price target on the BlackBerry maker, as well as on smartphone rivals Apple Inc (AAPL.O) and Palm Inc PALM.O, citing strong growth in the sector. [ID:nBNG257671]

$1=$1.10 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson

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