A report by UBS Securities Canada Inc. shows that Canadian stock markets continued to make big gains in July.

It reports that the S&P/TSX composite index surged 5.25% in July. The large-cap 60 led the way, while the mid- and small-cap indices trailed the benchmark, it notes. The Canadian index outperformed the Dow Jones Industrial Average and S&P 500, but trailed the Nasdaq composite index, which gained 6.2% in the month.

The Nasdaq wasn’t the only market to beat the TSX in July, South Africa’s market was almost 7% higher, and markets in Germany, Singapore, Switzerland and France also outpaced the TSX (in local currency terms).

Over the last 12 months, the market in South Africa is up almost 47%, and Germany, Italy, Sweden and Singapore are all stronger than Canada. However, the TSX is handily outpacing the major U.S. markets, the strongest is Nasdaq, up 15.8% in that time. So far in 2005, the TSX composite index is up 12.7%, and it’s up 23.2% over the last 12 months.

Nine of 10 sectors rose during July, led by the Industrials, energy and materials, which were up 9.1%, 8.5%, and 5.6%, respectively. Meanwhile, the information technology sector registered a small decline, and is the worst sector performer year-to-date, down by more than 16%. Energy stocks are up more than 60% over the last 12 months, making them far and away the biggest gainer.

Market breadth was very positive in the month. Among S&P/TSX composite constituents, 153 stocks (69%) posted price increases, versus just 63 decreases, and five names were unchanged.