Toronto, Jan 5 (IANS) Canadian markets opened in the new year Monday with gains, extending the last year’s rally into 2010.
Buoyed by higher metal and crude prices, the composite index on the Toronto Stock Exchange (TSX) rose 120.79 points to close at 11,866.90 - up one percent from last week.

The Canadian loonie or dollar also rose almost one cent against the US dollar to reach 96.02 cents US, signalling that it is on course for parity with the greenback.

Both the markets and the Canadian currency have made a major recovery since sinking to new lows in March last year.

After hitting to the lowest level of almost 7,500 points in March 2009, the markets have gained almost 50 percent to recoup some of the losses.

But the markets still have a long way to reach the peaks of June 2008 when the composite index crossed the 15,000-mark for the first time in their 150-year history of the Toronto Stock Exchange.

The Toronto Stock Exchange, which is the third largest in North America, is also the world’s largest energy market, with over 400 oil and gas companies traded on it.

Monday’s gains by the Canadian dollar bring it near parity with the US greenback.

Since sinking to 77 cents US in March 2009, the loonie rose by almost 16 percent to close the last year at above 95 cents US.

In fact, the loonie almost reached parity with the US dollar in October last when it touched 98 cents US Oct 14. But it retreated on fears of government intervention as the rising currency was - and is - harmful to the recession-hit manufacturing sector.

Market analysts expect the loonie to reach parity with the US dollar any time this year as the greenback continues to slide on the US government debt and subsequent fears of recession.

The only gains made by the US dollar since its slide began in 2002 were during the peak of the current recession when investors sought the safety of the US currency.