August 30, 2011 / 9:39 PM / 6 years ago

CANADA STOCKS-TSX rallies to 2-wk high as commodity prices rise

   * TSX closes up 129.86 points, or 1.04 pct, at 12,634.71
 * Materials up 1.9 pct, buoyed by gold and copper
 * U.S. FOMC minutes boost sentiment
 (Updates with further details)
 By Trish Nixon
 TORONTO, Aug 30 (Reuters) - Toronto's main stock index
rallied for a fourth straight day on Tuesday, reaching its
strongest point in nearly two weeks, as rising commodity prices
propelled resource-based shares higher.
 The heavyweight materials sector, which includes mining
shares, added 1.9 percent as gold prices surged more than 2
percent and copper rallied to its highest in almost a month on
Chile supply concerns. [GOL/][MET/L]
 Energy issues added 1.2 percent as Brent crude rose for a
sixth straight session to a four-week high. [O/R]
 "The commodities seem to have righted themselves from their
anxiety over the economic slowdown potential," said Paul Hand,
managing director at RBC Capital Markets.
 The index added to early gains after minutes from the last
U.S. Federal Reserve rate-setting meeting showed the central
bank had considered a range of actions to help a struggling
economy. [ID:nW1E7IR01J]
 "There's increasing talk of some more stimulus," said Elvis
Picardo, strategist and vice president of research at Global
Securities in Vancouver.
 "The market's interpreting that to mean QE3 in some shape
or form, and you're seeing gold take off on the back of that,
and the oil producers are going along for the ride as well."
 Barrick Gold ABX.TO, up 1.6 percent at C$49.76, and
Suncor Energy SU.TO, up 1.5 percent at C$31.02, were among
the index's heaviest gainers.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 129.86 points, or 1.04 percent, at
12,634.71. It touched a session high of 12,664.72, its
strongest since Aug. 17. Seven of the 10 main groups were
 Bank of Nova Scotia  BNS.TO helped boost the financial
sector, which rose 0.7 percent, after it reported a quarterly
profit rise of nearly 22 percent on Tuesday. The Canadian bank
was the most influential gainer on the index, adding 2.2
percent to C$53.50. [nN1E77T07J]
 "Other than (Royal Bank of Canada) that is off a little
bit, the banks obviously responded reasonably well to the
Scotia earnings," added Hand. Royal Bank of Canada RY.TO fell
0.5 percent to C$48.93, and was the index's heaviest decliner.
 Research in Motion RIM.TO was a top advancer, jumping 6.4
percent to C$31.91. The BlackBerry maker's stock also made
strong gains on Monday and Friday.
 "It's all on the heels of Google/Motorola and what that
means for the changing landscape," said Colin Gillis, a tech
analyst at BGC Partners in New York. "There's also a little bit
of what I consider excess patent fever going on."
 On the downside, Alimentation Couche-Tard Inc ATDb.TO,
dragged on the index, falling 4.1 percent to C$28.50. Canada's
top convenience store operator posted a 10 percent rise in
quarterly profit on Tuesday but missed market estimates due to
higher motor fuel prices and intense competition. [N1E77T050]
 Valeant Pharmaceuticals VRX.TO was another top decliner,
falling 0.4 percent to C$43.35 after announcing a friendly C$76
million ($77.6 million) takeover offer for Canadian cold and
flu medicine maker Afexa Life Sciences FXA.TO on Tuesday.
 (With additional reporting by Alastair Sharp; Editing by
Jeffrey Hodgson)

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