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TSX rises higher

TORONTO (Bloomberg) - Canadian stocks rose, lifting the main equity index to a six-week high, after the central bank said the country's recession is ending and companies including EnCana Corp. beat second-quarter earnings estimates.

Canadian Natural Resources Ltd. led a rally in energy producers as oil prices rose. Manulife Financial Corp. and Sun Life Financial Inc. climbed more than 4.8 percent, leading financial shares 2.7 percent higher as a group. EnCana, the country's biggest natural-gas producer, climbed 2.5 percent after second-quarter profit fell less than analysts estimated, helped by contracts to lock in commodity prices.

"The confidence is slowly coming back," said Pierre Bernard, who helps manage about C$800 million ($734 million) at IA Clarington Investments Inc. "You see it through companies coming in with these positive surprises. Managers are slowly thinking that the worst is behind."

The Standard & Poor's/TSX Composite Index added 243.33 points, or 2.33 percent, to 10,675.68 at 4.10 p.m. in Toronto, the highest level since June 11. The Bank of Canada said output will expand at an annualised pace of 1.3 percent from July through September, replacing a prior estimate of a 1 percent contraction. The recession in Canada began in the fourth quarter of last year.

Manulife, the nation's largest insurer, surged 4.9 percent to C$23.82, the highest price since June 12. Sun Life Financial, Canada's third-biggest insurer, rose 5.7 percent to C$34.86. Toronto-Dominion Bank climbed 3.1 percent to C$61.69.

EnCana advanced C$1.43 to C$59.08. Adjusted profit was $1.22 a share, beating the average analyst estimate in a Bloomberg survey by 30 percent.

Celestica Inc., Husky Energy Inc. and TransForce Inc. also gained after reporting earnings that beat analysts' estimates.

Electronic parts maker Celestica posted second-quarter earnings of 11 cents a share, on an adjusted basis, beating the average of analyst estimates by 18 percent. The shares advanced 2.8 percent to C$8.89, the highest price since August.

Husky Energy, a crude oil and natural gas producer, surged 6.3 percent, the most in two months, to C$34, after reporting profit that beat analysts' estimates by 36 percent. Trucking and delivery logistics company TransForce rose 5.7 percent to C$6.27 after its earnings of 20 cents a share beat analysts' estimates by 64 percent.

Teck Resources Ltd., Canada's largest base metals producer, advanced 5.1 percent to C$26 after reporting earnings in line with analysts' estimates.

Teck posted a 15 percent increase in second-quarter profit and said it reduced a $4 billion loan to $2.74 billion.

The price of crude oil rose as home resales in the US climbed in June for a third consecutive month. Oil for September delivery increased 2.6 percent, to $67.11 a barrel at the 2.30 p.m. close of floor trading on the New York Mercantile Exchange. Oil and natural gas producer Canadian Natural advanced 5.1 percent to C$63.68 after falling 7.1 percent during the past two days.