TSX hits seven-week high as golds soar with bullion price

Mon Jul 22, 2013 4:47pm EDT
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By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed on Monday to a seven-week high as a jump in the price of bullion fueled a rally in gold miners and broader positive sentiment lifted financials.

The Toronto market outperformed the S&P 500 index .SPX and posted its fourth session of gains in a row.

Investors also cheered a strong election victory by Japanese Prime Minister Shinzo Abe, who vowed to stay focused on reviving the stagnant economy.

The bullion price jumped 3 percent and was on track to post its biggest three-day rally in over a year, helped by weakness in the U.S. dollar and by a lessening of concern that the U.S. Federal Reserve will quickly dial back its stimulus program.

Down significantly on the year, the benchmark Canadian index's gold-mining sector was up 6.5 percent on Monday.

"Gold was knocked down too far and people realize there is value there," said Fred Ketchen, director of equity trading at ScotiaMcLeod.

"This market is skittish," he added. "But there's probably more confidence in the market than there is fear."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 73.25 points, or 0.58 percent, at 12,758.38, after touching 12,761.44, its highest point since May 30.   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch