Gold miners, Enbridge push TSX up to near three-year high

Fri Feb 14, 2014 5:12pm EST
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By John Tilak

TORONTO (Reuters) - Canada's main stock index touched its highest level in nearly three years on Friday as higher bullion prices drove up shares of gold producers and Enbridge Inc (ENB.TO: Quote) gained after the pipeline company's quarterly results showed revenue jumped.

Investors also cheered data showing the euro zone economy grew in the fourth quarter, beating market expectations, as strength in Germany and France helped the region's recovery.

Figures indicating a sharp drop in U.S. manufacturing output in January, caused by cold weather, failed to dampen the positive mood.

A rally in the gold-mining sector helped the benchmark Canadian index climb for a ninth straight session and recorded its strongest weekly gain in about 1-1/2 months.

The gold group, which is up about 28 percent this year, hit a five-month high on Friday.

"The resource stocks will come off the mat this year," said Bob Gorman, chief portfolio strategist at TD Wealth. "I think by and large they will have found a floor."

"It's certainly been a real story so far this year," he said of the gold sector's performance, adding that shares of gold miners were looking more attractive than the commodity for the first time in several years.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 53.11 points, or 0.38 percent, at 14,054.76, just below the session high of 14,071.54 - its highest since early 2011.   Continued...

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