Strong resources drive TSX; telecoms wilt

Thu Oct 24, 2013 5:34pm EDT
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By Cameron French

TORONTO (Reuters) - Canada's main stock index pushed higher on Thursday as gold issues were driven by strong results and higher bullion prices, more than making up for telecom stocks that weakened on concerns about growth in the sector.

Gold, which is down 20 percent this year, hit a one-month high on expectations of continued stimulus from the U.S. Federal Reserve. U.S. crude futures also strengthened.

"From a commodity point of view, that helped to feed the market to some degree," said Michael Sprung, president at Sprung Investment Management.

Agnico-Eagle Mines Ltd (AEM.TO: Quote) shot up 18.5 percent to C$31.82, after the gold producer posted stronger-than-expected quarterly results and raised its full-year production forecast. Larger rival Goldcorp (G.TO: Quote) gained 4.5 percent to C$27.76, also on robust results.

The TSX material subgroup, which includes TSX precious and base metals producers, surged 2.9 percent.

Also driving the materials group was coal and base metals miner Teck Resources TCKb.TO on the back of strong results. Its shares gained 3.8 percent to C$30.54.

A 1.6 percent drop in Potash Corp (POT.TO: Quote) shares to C$32.41 tempered the group's gains. The fertilizer producer reported a sharp drop in third-quarter earnings and cut its full-year outlook more than expected.

Six of the ten TSX subgroups ended the session higher.   Continued...

People walk past an electronic board displaying the midday TSX index in Toronto February 16, 2011. REUTERS/Mark Blinch