(Updates with morning prices)

By Ragini Mathur

Oct 23 (Reuters) - Canada's resource-heavy main stock

index rallied on Thursday, led by gains in the energy and

materials sectors, which tracked a rise in oil, gold and other

metal prices.

At 10:13 a.m. ET (1413 GMT), Toronto's S&P/TSX composite

index was up 0.6% at 30,148.38 points.

The energy sector rose 2.5% after oil prices gained

nearly 5% following U.S. government's decision to impose

sanctions on major Russian suppliers.

Materials was the second-best performing sector,

rising 1.4%, after gold prices rose more than 1% due to

safe-haven demand amid renewed geopolitical risks. Bullion had

fallen for two consecutive sessions.

Silver and copper prices also advanced.

"That's a big, big rally that helps the mining stocks after a

couple of really tough days for that sector as we saw a pretty

sizable correction in mining the other day," said Colin

Cieszynski, chief market strategist at SIA Wealth Management.

The materials sector posted its worst single-day decline in

more than five years on Tuesday.

On the economic front, Canada's retail sales rebounded in

August as consumers spent more on new cars, at supermarkets and

for clothing, among other things.

Canadian Prime Minister Mark Carney said on Wednesday his

government's first budget will reduce economic and security

reliance on the U.S. and cut wasteful spending.

The country remains heavily dependent on the U.S. market,

with most exports flowing south of the border. Already

vulnerable to American trade policies, Canadian exports not

protected by the U.S.-Mexico-Canada agreement have suffered

significantly from existing tariffs.

In Toronto, the information and technology sector

added 0.7%.

Real estate and utility sectors were

down 0.6% and 0.2% respectively after Canadian government

10-year bond yields rose 1.1 basis points to 3.081%,

tracking moves in its U.S. counterpart.