TSX hits one-month high as gold miners bounce back

Tue Nov 11, 2014 4:34pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index closed up on Tuesday, hitting a one-month high, as the gold-mining sector and the bullion price rebounded from a decline in the previous session.

The benchmark TSX gained for a fifth straight session, with increasing signs that volatility is declining. It has recovered from a sharp pullback last month and is up about 8 percent since hitting an eight-month low nearly four weeks ago.

The energy sector has been the biggest drag on the Canadian equity market in recent weeks, battered along with oil prices over concerns about increasing supply and sluggish demand. The group climbed after an initial drop.

“Everyone's licking their wounds over the energy sector. We could get a little more lift here between now and mid-December,” said Douglas Davis, vice chairman at Davis-Rea.

“Low volatility is a positive sign for the market,” he added. “It's better because people are feeling better, and therefore the panic has come and gone.”

The Toronto Stock Exchange's S&P/TSX composite index closed up 50.47 points, or 0.34 percent, at 14,760.27. Six of the 10 main sectors on the index were higher.

Among shares of energy producers, Canadian Natural Resources Ltd rose 1.4 percent to C$41.12, and Suncor Energy Inc was up 0.3 percent at C$39.29.

The gold-mining sector soared 4.2 percent. Barrick Gold Corp added 2.4 percent to C$13.21, and Goldcorp Inc advanced 2.4 percent to C$22.21.

(Editing by James Dalgleish)

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch