TSX gains as gold miners jump; up 0.9 percent for week

Fri Jun 3, 2016 4:52pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index gained on Friday as gold miners jumped with the precious metal after weak U.S. jobs data hurt the U.S. dollar, offsetting losses for financial stocks and some energy companies.

Seventeen of the 20 most influential gainers on the index were from the materials group, which includes precious and base metals miners and fertilizer companies. The group gained 6.5 percent.

Barrick Gold Corp (ABX.TO: Quote) jumped 11.6 percent to C$24.81, Goldcorp Inc (G.TO: Quote) gained 6.4 percent to C$23.65, and Kinross Gold (K.TO: Quote) rose 13.4 percent to C$6.45.

"If you want to employ a levered way to play the gold area, this is gold miners rather than the price of gold," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

Gold prices surged more than 2 percent after U.S. payrolls data fell well short of forecasts, bolstering the view that the Federal Reserve would hold interest rates steady.

Diversified miners also gained as a range of base metals prices were boosted by a weaker U.S. dollar.

Teck Resources TCKb.TO advanced 7.3 percent to C$13.85, and First Quantum Minerals (FM.TO: Quote) gained 6.4 percent to C$9.15.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 89.79 points, or 0.64 percent, at 14,226.78. It gained 0.9 percent on the week, its fourth straight weekly advance.   Continued...

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