January 12, 2011 / 2:55 PM / 7 years ago

TSX rises as commodities show strength

TORONTO (Reuters) - Toronto’s main stock index rose for a second straight session on Wednesday to its highest close in a week, encouraged by rising commodity prices and by a Portuguese bond sale that soothed jitters over European sovereign debt.

<p>A general view of the TSX (Toronto Stock Exchange) Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch</p>

The Toronto Stock Exchange’s S&P/TSX composite index closed up 59.16 points, or 0.44 percent, at 13,460.21. Seven of the index’s 10 main groups were higher, supported by a 0.93 percent rise in the materials sector, and a 0.64 percent advance in oil and gas.

“Commodities are all on the green side, whether it’s the base side of it like copper, or precious metals, or energy,” said Francis Campeau, broker at MF Global Canada in Montreal.

Nexen Inc added 4.6 percent to C$24.07, while EnCana gained 1.8 percent to C$29.22, spurred by oil prices that jumped to a 27-month high above $91 a barrel on an accelerated tightening of supply following production shutdowns in several oil markets.

The materials group was paced by blue chips such as fertilizer producer Potash Corp, which was up 2.66 percent at C$167.29, and Teck Resources

Markets also drew strength from the solid demand shown at Portugal’s 10-year bond auction, though fragile European debt markets still need to consider auctions in Spain and Italy this week.

“There was certainly concern about the refinancing of Portuguese bonds and that seems to be alleviated now and looks like it’s out of the way, at least temporarily,” said John Kinsey, portfolio manager at Caldwell Securities Ltd.

Consolidated Thompson Iron Mines shares surged 29.67 percent to C$17.35 after U.S.-based Cliffs Natural Resources said late on Tuesday that it will buy the Canadian miner for C$5.07 billion ($4.1 billion).

Trendy yoga-wear company Lululemon Athletica shares jumped more than 8 percent to C$71.94 after it forecast higher-than-expected quarterly results.

Reporting by Ka Yan Ng and Solarina Ho; editing by Peter Galloway

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