CANADA STOCKS-TSX rallies on strength in commodities

*TSX up 104.02 points at 11,669.78

*Resources lead index higher
(Updates with details, commentary) (Read more stock market commentary today.

By Claire Sibonney

TORONTO, July 13 (BestGrowthStock) – Toronto’s main stock index
shot higher on Tuesday morning as commodity prices rose and
drove up weighty resource shares.

The Thomson Reuters-Jefferies CRB index (.CRB: ), a global
benchmark of 19 different commodities including metals, was up
more than 1 percent, and the index’s materials group jumped 1.2
percent in reaction.

Base metals miner Teck Resources (TCKb.TO: ) rose 1.4 percent
to C$34.91, while Barrick Gold Corp (ABX.TO: ) added 0.6 percent
to C$45.46.

Powerhouse energy shares, up 1.2 percent, benefited as oil
and natural gas prices rose.

Suncor Energy (SU.TO: ) added 1.1 percent to C$33.45, and
EnCana Corp (ECA.TO: ) gained 0.8 percent to C$34.67.

“Commodities and hard assets are becoming the only store of
value that many more sophisticated investors are looking to and
Canada happens to have a lot of this type of stuff,” said Aaron
Fennell, senior markets strategist at Lind-Waldock.

“Gold, crude oil, stuff that you have a fixed amount of, it
can’t be inflated away, it’s needed by the rest of the world —
and that’s the cornerstone of the whole commodity boom these
days.”

He added that Canada is becoming more attractive in the
commodity space because of its perceived safety and credibility
at a time when world markets are worried by sovereign debt
risks.

At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 104.02 points, or 0.9
percent, at 11,669.78. All of its 10 sectors were higher.

The financial sector advanced 0.7 percent.

Royal Bank of Canada (RY.TO: ), the country’s biggest lender,
was up 0.8 percent at C$54.80 after its chief executive said
the bank is on the lookout for acquisitions. [ID:nLDE66C174]

Gluskin Sheff + Associates (GS.TO: ) rose 0.8 percent to
C$17.30, after the wealth manager said it sees a 90 percent
increase in performance fees on a sequential basis and said it
may pay a special dividend. [ID:nSGE66B0IW]

Also supporting the risk-on environment, better than
expected quarterly results from Alcoa Inc (AA.N: ) and CSX Corp
(CSX.N: ) late Monday gave a promising start to the earnings
season, sparking a broad rally in the United States. [.N]

The market showed little reaction to data that showed
strong demand from Canadian businesses and consumers triggered
a surge in imports in May that outpaced exports, leading to a
third consecutive monthly trade deficit. [ID:nN13232203]

($1=$1.03 Canadian)
(Reporting by Claire Sibonney; editing by Peter Galloway)

CANADA STOCKS-TSX rallies on strength in commodities