TORONTO (Reuters) - Toronto's main stock index eked out a modest gain yesterday to hold at 10-month highs, as strength in base metal prices boosted mining issues and investors bet on strong global economic growth and demand.

The TSX's materials group, home to miners and fertiliser companies, rose 0.8 percent, lifted by Potash Corp of Saskatchewan, which gained 4.6 percent to C$107.50, while miner Teck Resources was up 1.6 percent at C$29.55.

Shares of some gold miners fell in tandem with weaker gold prices, including Goldcorp, down 0.9 percent at C$41.26, and Barrick Gold off 0.13 percent at C$38.85.

"We've managed to stay above the 11,000 mark and that's probably giving investors some comfort," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"There may be some skepticism about whether that level is sustainable in the short term, so when you see the index hold above a level like that it gives investors some confidence."

The S&P/TSX composite index finished the day up 28.83 points, or 0.26 percent, at 11,046.93, closing above 11,000 for the second day in a row. Four of the index's 10 main groups finished higher.

For much of the session, the Toronto index languished in the red as investors took a breather after Tuesday's two percent surge past the 11,000 mark on stronger commodity issues.

Mr. Picardo also said the index benefited yesterday from firmness among financials, which climbed 0.6 percent. Bank of Nova Scotia rose 1.6 percent to C$47.64, while Canadian Imperial Bank of Commerce, rose 2.3 percent to C$69.30.

The energy group fell 0.6 percent on profit-taking, even as the price of oil settled higher near $72 a barrel. EnCana Corp. dropped 2.4 percent to C$57.47.