* Canada's S&P/TSX index seen at 12,250 at end-2010
* Index will be supported by resources to mid-2011
By Jennifer Kwan
TORONTO, June 24 (Reuters) - Canada's main stock index will likely tickhigher throughout the second half of the year and climb even furtherinto the middle of 2011, supported by its heavy resource make-up as theglobal economy slowly heals, a Reuters poll found.
The TorontoStock Exchange's S&P/TSX composite index <.GSPTSE> was seenending the year at 12,250 points, according to the median forecast of25 analysts and fund managers, published on Thursday.
That was higher than Wednesday's close at 11,807.5.
The results were slightly less optimistic than the trend seen in March,when the median forecast showed the TSX ending 2010 at 12,613,reflecting a tepid recovery. Many analysts expressed a cautiousoptimism that the market would move higher steadily to 12,500 by themiddle of next year.
Estimates for the TSX index heading intothe middle of next year were in a wide range -- from 9,800 to 15,250 --reflecting uncertainty about the strength of the global recovery.
"The market is basically telling us we're pricing for somewhat subduedgrowth," said Sid Mokhtari, a market technician and director ofinstitutional equity research at CIBC World Markets.
The wariness is in line with a Bank of Canada assessment of the health of the country's financial system.
The central bank said this week that overall risk to the stability ofthe financial system has increased over the past six months as mountingconcerns over global sovereign debt levels have "erupted" in markets.
It also said the domestic financial system is ultimately vulnerable to renewed stress if global market tensions increase.
At the same time, however, the Canadian Finance Department said thisweek private forecasters raised their 2010 estimates for economicgrowth, saying the near-term outlook has "improved further" since aMarch survey.
Financialmarkets have been heavily influenced in recent months by broader eurozone debt concerns, as well as worries that China would tighten thereins on monetary policy.
"In the short term, we may see someweakness because of the concerns over global growth, but when it'sapparent those concerns are overdone the strength in the Canadianeconomy should see the market higher," said Gavin Graham, globalstrategist at Excel Funds Management Inc.
The Canadian economyhas recovered faster than predicted, fueled largely by consumerspending.
Earlier thismonth, the Bank of Canada raised its key rate by a quarter-point to 0.5percent, becoming the first in the Group of Seven advanced economies totighten monetary policy following the global financial crisis.
Markets widely expect another rate increase on July 20, even thoughGovernor Mark Carney cautioned last week there was no preordained pathfor monetary policy, keeping his options open in case of a financialmarket flare-up over European debt worries.
(Additional reporting by Claire Sibonney; Editing by Ross Finley and Jon Loades-Carter)