TSX extends 2017 rally on gold miners; nears all-time high
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index extended its new year rally into a third day on Thursday, as gold miners and other materials stocks rose with higher commodity prices and telecom stocks also notched gains.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended the day up 69.83 points, or 0.45 percent, at 15,586.58, within striking distance of its all-time high of 15,685.13, which was hit in September 2014.
"I think the markets can grind higher from here," said Manash Goswami, portfolio manager at First Asset Investment Management. "I'm a little more constructive than I had been last year," he added.
The most influential movers on the index included two of the world's largest gold producers, with Barrick Gold Corp (ABX.TO: Quote) jumping 5.6 percent to C$23.02 and Goldcorp Inc (G.TO: Quote) up 4.1 percent to C$19.78.
Torex Gold Resources (TXG.TO: Quote) surged 21.4 percent to C$26.75 after announcing high-grade results from exploration drilling close to existing operations and Alamos Gold Inc (AGI.TO: Quote) jumped 14.4 percent to C$11.37 after saying its Kirazli project in Turkey gained government permits, allowing development to begin.
The materials group, which includes precious and base metals miners and fertilizer companies, added 3.8 percent.
A slew of smaller gold miners also gained as gold prices jumped to a one-month high, but Goswami said further gains may be limited by a likely extension of U.S. dollar strength.
"We're not super bullish on gold equities at the moment just given that we see further rate hikes from the Fed and continuous strength in the U.S. dollar so we expect gold to lag," he said. Continued...