TORONTO (Reuters) - The Toronto Stock Exchange's main index reversed a two-day losing streak and ended higher, boosted by resource shares and a rise in BCE after rival Telus said it is in talks to buy it.The S&P/TSX composite index closed up 117.57 points, or 0.84 percent, at 14,095.73.

Resource issues rose despite softer commodity prices.

"I think this is a pretty bullish signal for commodities," Robert Lauzon, executive director, head of trading at Middlefield Capital, said of the resilience in resources.

Energy issues, which account for about 30 percent of the index's weight, rose 1.5 percent even though the price for US crude oil slipped 21 cents to $68.65 a barrel amid higher U.S. crude stockpiles and expectations that a strike in Nigeria would not impede shipments.

"I wouldn't read so much on the fact that oil is down 20 cents and the stocks are up," said Bruce Latimer, trader at Dundee Securities. "I'd look at it more that oil is trading at $69 a barrel and that's as close to $70 as you can get."

"It's a proverbial psychological level and you're coming into the heavy summer traffic season," he added. "At this price, these companies can make a lot of money."

EnCana rose C$1.96, or 2.8 percent, to C$70.86, while Suncor Energy gained C$2.28, or 2.4 percent, to C$97.28.

In the materials group, up 1.4 percent, Alcan added C$1.30, or 1.5 percent, at C$89.80, while Teck Cominco rose 73 Canadian cents, or 1.5 percent, to C$48.60.

The benchmark index also got a bounce from the telecommunications sector, up 0.7 percent, as Telus, Canada's No. 2 phone company, confirmed early Thursday that it is in talks to explore the acquisition of larger rival BCE, which is already the target of potential private-equity bidders. BCE gained C$1.57, or four percent, at C$40.74 on the merger news, the most heavily-traded stock on the TSX on a volume of 21 million shares, while Telus was down C$2.11, or 3.2 percent, at C$63.65.

The information technology sector took direction from south of the border, where techs helped to send US stocks higher. In Toronto, the technology sector was up 1.6 percent with shares of Research In Motion Ltd. up C$4.12, or 2.3 percent, at C$183.83.