TORONTO (Bloomberg) — Canadian stocks rose for a second day, extending their rebound after the benchmark index's biggest two-day loss in almost a year, as investors bet company profits will withstand higher borrowing costs.

Raw-materials producers including Barrick Gold and Teck Cominco led the advance as prices for gold, copper and crude oil climbed. Gains in the main Canadian stock index were limited as utilities such as Canadian Utilities Ltd. fell.

"We see a continually improving landscape," said George Vasic, the Canadian market strategist of UBS Securities Canada. "The overall picture for earnings is very encouraging. It's not just a rose-coloured view of commodities."

The Standard & Poor's/TSX Composite Index gained 34.32, or 0.3 percent, to 13,832.82 in Toronto. The benchmark dropped 3.1 percent on June 6 and June 7, the biggest two day drop since June 13, 2006. It reached a record 14,146.74 on June 4.

Vasic said UBS analysts increased their 2008 profit forecasts for the 277 members of the Canadian benchmark by 3.2 percent, raising estimates for seven of 10 industry groups in the index, including financial shares.