CANADA STOCKS-TSX rises on gold mining gains

Thu May 24, 2012 11:31am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX up 47.63 pts, or 0.41 pct, at 11,612.25
    * Gold miners lead materials gains
    * Weak euro zone, U.S., China data weigh

    By Jon Cook	
    TORONTO, May 24 (Reuters) - Toronto's main stock index was
higher in choppy trade on Thursday as gains from gold miners
offset concerns about the festering euro zone debt crisis and a
slew of weak global economic data.	
    Surveys on Thursday showed the euro zone's private sector
contracted, U.S. manufacturing growth slowed and China's
once-booming factories faltered in May. 	
    But Canada's heavyweight materials sector, which includes
gold miners, rose more than 1 percent, helping the broader index
shrug off the dreary global economic data.	
    "Gold does carry a big weight in the index," said Sid
Mokhtari, market technician and director, institutional equity
research at CIBC World Markets. "The market is looking for a
reason to be able to rally off very oversold conditions."	
    Gold stocks rallied for the second straight day as bullion
halted its three-day slide and rose 1 percent, boosted by
International Monetary Fund data showing another rise in central
bank gold holdings in April. 	
    The most influential gainers included Goldcorp, up
0.9 percent to C$38.76, Yamana Gold, rising 1.9 percent
to C$15.13, Eldorado Gold, which climbed 2.2 percent to
C$11.94 and Barrick Gold, up 0.4 percent at C$40.71.	
    At 11:25 a.m. EDT (1525 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was up 47.63 points, or 0.41
percent, at 11,612.25, just below its highest level in 10 days.	
    Investor confidence was still shaky after Wednesday's news
that European Union leaders have been advised by senior
officials to prepare contingency plans in case Greece quits the
single currency.	
    Sentiment worsened after PMI data for the euro zone region
showed activity was declining at a faster pace than expected in
    Manufacturing output also slowed in the world's two largest
economies. China's industrial sector retreated to 48.7 in May
from a final reading of 49.3 in April and a U.S. manufacturing
index dipped to 53.9 in May from 56.0 the previous month.	
    Canadian financial shares were flat after some mixed
second-quarter earnings results from the country's top lenders.
Toronto-Dominion Bank shares rose 1.1 percent to C$79.60
after Canada's No. 2 bank said on Thursday its quarterly profit
rose 20.7 percent. 	
    However, gains were muted by Royal Bank of Canada,
which tumbled 2 percent to C$51.82 after Canada's largest bank
reported a 7 percent decline in quarterly earnings on Thursday.	
    "It's stable," said CIBC's Mokhtari. "You can't say too many
wrong things about the group that pays good dividends and has
some good follow through."