* TSX up 65.15 points at 11,762.21
* Resources, financials lead index higher (Updates with details, commentary)
By Claire Sibonney
TORONTO, July 29 (Reuters) - Toronto’s main stock index gained ground on Thursday morning as both resource and financial issues rallied on strong commodity prices and robust quarterly earnings from heavyweight companies.
“Earnings continue to be good and that gives a little more underlying confidence, and then with commodities doing better, that obviously helps as well,” said John Kinsey, portfolio manager at Caldwell Securities.
Gold mining stocks advanced 0.5 percent following a slew of rosy corporate results, helped by record bullion prices, and as the price of the precious metal firmed.
Barrick Gold (ABX.TO) climbed 1.2 percent to C$42.12, after the world’s largest gold producer posted a 59 percent gain in profit and raised its dividend by 20 percent. Eldorado Gold Corp (ELD.TO) jumped 1.2 percent to C$16.60 after the miner reported its profit more than doubled. [ID:nN29200421] [ID:nSGE66S0ER]
“For about a week the commodity had been sliding and that was affecting the stocks. But the stocks, now, I think should have some basing ... because earnings were very good and there’s no reason now with higher production and high gold prices that going forward their earnings shouldn’t be good as well,” added Kinsey.
Also in the materials sector, base-metal miners rose 0.4 as copper hit three-month highs, while Potash Corp POT.TO gained 1 percent to C$102.72, after posting a quarterly profit that more than doubled and easily outstripped expectations. [ID:nN28198150]
Kinsey noted that Potash is “always bullish” but optimistic comments about the outlook for worldwide fertilizer demand in 2011 also helped the shares.
At 10:38 a.m. (1438 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 65.15 points, or 0.6 percent, at 11,762.21.
U.S. crude oil futures jumped more than $1, helping lift the TSX energy sector up 0.4 percent. [O/R]
Suncor Energy rose 2.1 percent to C$33.72, but Cenovus Energy (CVE.TO) was down 4 percent at C$28.78, after its quarterly profit came in well below expectations. [ID:nSGE66S0GI]
“They had been under pressure lately and really I don’t think for any particular reason so I think they’re just rebounding now from maybe being oversold,” said Kinsey.
In other earnings reactions, big-screen movie company Imax Corp IMX.TO soared almost 5 percent to C$15.56 after posting a fivefold increase in quarterly profit and raised its theater system installation outlook by about 25 percent for the year. [ID:nSGE66S0JU]
Thomson Reuters (TRI.TO) slipped 1.1 percent to C$39.26, after reporting quarterly profit and revenue that were slightly below expectations, but said sales trends pointed to a return to revenue growth this quarter. [ID:nN29159519] (Reporting by Claire Sibonney; editing by Rob Wilson)