TSX's gold miners, banks help index rise

Tue Jul 26, 2016 5:04pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index rose on Tuesday, helped by gains for gold miners, other materials stocks, and banks, as bullion prices rose ahead of a U.S. Federal Reserve rate decision.

Barrick Gold Corp (ABX.TO: Quote) jumped 2.9 percent to C$26.97 after Reuters reported the world's largest gold producer is weighing a sale of its majority stake in an African miner.

The country's biggest banks were also among the index's most influential gainers, with Royal Bank of Canada (RY.TO: Quote) up 0.7 percent at C$80.41 and Bank of Nova Scotia (BNS.TO: Quote) adding 0.7 percent to C$66.26.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended the day up 51.90 points, or 0.36 percent, at 14,550.00.

Six of its 10 main sectors rose, with the materials group that includes precious and base metal miners and fertilizer companies up 2.2 percent.

Goldcorp Inc (G.TO: Quote) rose 1.5 percent to C$24.16 and Potash Corp (POT.TO: Quote) gained 2.6 percent to C$22.90.

But with the index just off its highest close in a year investors are nervous that further gains are unlikely.

"I think we are vulnerable given the fact that valuations are now pushing quite high and the financial results are not stellar, they merely exceed reduced expectations," said Steve Belisle, senior portfolio manager at Manulife Asset Management.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.   REUTERS/Mark Blinch