Business

Tue Jun 17 20:28:51 PDT 2008

TORONTO (Reuters) –
The Toronto Stock Exchange's main index
notched a record high close on Tuesday, racking up its third
session of triple digit gains as resource shares rose despite
some softer commodity prices.

BCE Inc was up after the Supreme Court of Canada delayed a
ruling on whether to approve or reject the C$34.8 billion
($34.1 billion) buyout of the telecom company. BCE closed up
C$1.52, or 4.5 percent, at C$35.05.

Fertilizer producers Potash Corp of Saskatchewan and Agrium
led the way up amid worries over damage to crops in the U.S.
Midwest following torrential rains and flooding. Corn prices
were up sharply.

"They have a tremendous amount of concern about the
viability of some key crops, which have pushed a lot of these
commodities prices – most recently in the grain complex – to
new or all-time highs," said Peter Chandler, senior
vice-president at Canaccord Capital in Waterloo, Ontario.

That "has been driving some of the companies on our side of
the market, but casting a sort of a pall over the U.S. market,"
Chandler said.

The S&P/TSX composite index closed up 124.55 points, or
0.83 percent, at 15,068.83, climbing over the previous record
high close of 15,047.34, set last month. Of the index's 10 main
sectors, seven ended in an upswing.

Potash Corp was the biggest net gainer, rising C$8.36, or
3.6 percent, to C$244.03, while Agrium was up C$4.70, or 4.3
percent, to C$113.00. The advance helped the materials sector
push up 1.7 percent.

The energy sector rose 1.3 percent, even though oil prices
finished lower on Saudi Arabia's plans to increase crude
output. Analysts said energy shares, which have not risen as
fast as oil prices, were playing catch-up with the commodity.

Canadian Natural Resources rose C$2.17, or 2.1 percent, to
C$106.92, and Canadian Oil Sands Trust added C$1.05, or 2
percent, to C$54.85.

Shares of Air Canada gained 29 Canadian cents, or 3.3
percent, to C$9.13 after it said it will slash 2,000 jobs and
cut capacity amid soaring fuel prices.

($1=$1.02 Canadian)

(Reporting by Leah Schnurr; Editing by Peter Galloway)

Source: Reuters