(Adds investor comment, updates prices to close)
* TSX ends up 109.37 points, or 0.82 percent, at 13,462.71
* All 10 main sectors gain
By Alastair Sharp
TORONTO, Sept 15 (Reuters) - Canada's main stock index rose
in a broad but shallow rally on Tuesday, while caution remained
a dominant theme on global markets as investors wait to see if
the U.S. Federal Reserve will hike interest rates for the first
time in nearly a decade.
"Day to day it's tough to see which way this market's
going," said Allan Small, a senior investment adviser at
HollisWealth, who said trading volumes were muted.
He said a spike in U.S. Treasuries yields could suggest
increased bets on a Fed hike when it meets later this week, and
that a rise could be the vote of confidence investors need to
push stocks higher.
In that scenario, Small said overall Canadian market gains
will be less pronounced than in U.S. markets, which are not as
heavily stacked with resource stocks weighed down by limping
crude oil prices.
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 109.37 points, or 0.82 percent, at
13,462.71. All 10 main sectors rose, with utilities jumping 2.5
percent and industrials up 1.6 percent. The index had hit a peak
above 15,500 points in April.
The market's fall presents a buying opportunity for those
who are confident that the neighboring North American economies
will improve in the second half of the year.
"We're taking advantage of the market correction to put cash
to work," said Barry Schwartz, portfolio manager at Baskin
Financial Services. "I'm like a kid in a candy store. In my
opinion the problem is my mommy has only given me a dollar to
spend."
The most influential movers on the index included Valeant
Pharmaceuticals International VRX.TO , a large weight and
erratic stock, which gained 2.4 percent to C$302.53.
Railway companies Canadian National CNR.TO and Canadian
Pacific CP.TO also gained, the former up 1.9 percent to
C$74.43 and the latter adding 2.3 percent to C$194.17.
The financials group climbed 0.7 percent, with Royal Bank of
Canada RY.TO up 0.8 percent to C$73.20 and Manulife Financial
Corp MFC.TO gaining 1.5 percent to C$20.55, while energy
shares gained a quarter-percent overall.
Baskin's Schwartz said he was avoiding oil and gas companies
because volatility in crude markets was making valuating them
difficult.
U.S. crude CLc1 prices rose 2 percent to $44.87 a barrel,
while Brent crude LCOc1 added 0.5 percent to $46.60. O/R
(Editing by Bernadette Baum and Dan Grebler)