CANADA STOCKS-TSX rallies on gold miners

Wed May 9, 2012 12:09pm EDT
 
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* TSX up 31.45 pts, or 0.3 pct, to 11,736.19
    * Rebounds after hitting 2012 low at 11,555.08
    * Materials rise on gold mining gains
    * Euro zone worries weigh on financials


    By Jon Cook	
    TORONTO, May 9 (Reuters) - Toronto's main stock index turned
positive on Wednesday as gold miners rallied after bullion
prices rose from four-month lows, offsetting steep early losses
as political turmoil in Greece heightened euro zone debt fears.	
    Gold prices reversed course after hitting a low of $1,584.11
an ounce on Wednesday, helping Canada's heavily weighted
materials sector rise 1.5 percent. 	
    After dropping sharply the past two days, Barrick Gold
 jumped 3.1 percent to C$37.86 and Goldcorp Inc 
was up 3 percent to C$35.43.	
    Gold's move helped the Toronto Stock Exchange's S&P/TSX
composite index halt its five-session losing skid.	
    "Technically we're due for a bounce," said Barry Schwartz,
vice president and portfolio manager at Baskin Financial
Services. "Conditions are horribly oversold. These things tend
to mean reverts."	
    At 11:40 a.m. (1540 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 31.45 points, or 0.3
percent, to 11,736.19, rebounding after hitting a 2012 low at
11,555.08.	
    Energy firms also halted their downward momentum, rising 
0.4 percent on Wednesday. Oil and gas producers had tumbled
after Brent crude prices slipped by over a dollar towards $111 a
barrel on Wednesday. 	
    Encana Corp rose 2.6 percent to C$22.03 and Cenovus
Energy was up 1.2 percent at C$32.59. Canada's top oil
producer, Suncor Energy, was still down 0.7 percent at
C$29.56.	
    Political upheaval in Greece, a change in the French
presidency and renewed concerns about the resilience of the
Spanish banking sector sent markets tumbling overnight.	
    Seven of Canada's 10 main sectors were lower. Losses were
driven by a 0.4 percent drop in the heavyweight financial group.
Canada's two largest banks led the losses, with Royal Bank of
Canada falling 1 percent to C$53.55 and Toronto-Dominion
Bank slipping 0.8 percent to C$79.76.	
    Schwartz said Canadian stocks have been battered more than
their global counterparts due to Canada's resource-heavy index
and "high exposure" to gold and oil issues.	
    "Our trading with Europe is limited, but it doesn't seem to
matter," he added.	
    Greece moved closer to a second snap election on Wednesday
when the head of the biggest party launched a new attack on
radical leftist Alexis Tsipras, saying his plans for a new
government would push the country out of the euro zone.