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Toronto stocks surge

TORONTO (Reuters) — The Toronto Stock Exchange’s benchmark index surged more than 180 points yesterday in a broad rally fueled by strong energy, resource and financial shares, as well as some optimism before the federal budget.The S&P/TSX composite index rose 182.06 points, or 1.4 percent, to close at 13,011.74.

All but one of the benchmark’s 10 main groups advanced, with the key energy sector gaining 2.5 percent, the resources-heavy materials group adding 1.3 percent and the financials group advancing 1.4 percent.

“Naturally, the energy market is doing quite well, but also we’re seeing some general strength in metal commodities and even more specifically energy metal, such as uranium, which certainly receives a little more attention these days,” said Neil Andrew, associate portfolio manager at Leeward Hedge Funds in Toronto.

The S&P/TSX 60 index of Canadian blue chips rose 11.37 points to 744.71.

The day’s loser was the information-technology group, which gave up 0.9 percent, dragged down in part by a weaker-than-expected revenue forecast from telecommunications gear maker Nortel Networks Corp.

As well, investors awaited the release of the federal budget with an eye to capital-gains tax relief. However, Finance Minister Jim Flaherty’s fiscal plan, delivered after the markets closed, proved devoid of such measures.

“I’m not sure if (the index) is going to hold here, because today’s move is certainly quite significant,” said Elvis Picardo, at Global Securities Corp., in Vancouver. “There is a risk that if the budget disappoints on any front, we could retrace some of these gains tomorrow.”

During the session, some of Canada’s largest energy names advanced. EnCana Corp. rose C$2.03, or 3.8 percent, to C$55.93, and Suncor Energy Inc. gained C$2.16, or 2.7 percent.