TSX rises as gold miners jump, U.S. data supports

Tue Nov 25, 2014 4:32pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index climbed on Tuesday as weakness in the U.S. dollar help drive up the bullion price and shares of gold miners, while positive U.S. economic data boosted most other sectors.

U.S. growth was stronger than initially thought in the third quarter, data released on Tuesday showed, due largely to upward revisions to business- and consumer-spending figures.

The Toronto stock market's benchmark TSX index has been gaining steadily since a pullback in October, but has yet to reach the record levels it hit in September.

The energy sector, which is in a slump over concerns about an imbalance in oil supply and demand, faltered again.

“It looks like investors are paring back their positions ahead of the OPEC meeting,” said Youssef Zohny, portfolio manager at StennerZohny Investment Partners of Richardson GMP Ltd, which manages about C$28.3 billion in assets.

“(The energy sector) is definitely at an attractive entry point than it was in the summer,” he added. “If you take a long-term view, that’s an area of the market that is showing relative value, but you definitely have to show some patience.”

The Toronto Stock Exchange's S&P/TSX composite index closed up 58.24 points, or 0.39 percent, at 15,073.65. Eight of the 10 main sectors on the index were higher.

Spurred by a gain in the bullion price, the gold-mining sector climbed 4.3 percent. Goldcorp Inc added 4.9 percent to C$24.15, and Barrick Gold Corp rose 4.3 percent to C$14.83.   Continued...

 
People walk by a Bay Street sign at the financial district in Toronto, October 10, 2008.  REUTERS/Mark Blinch