CANADA STOCKS-TSX rises along with gold and oil prices

Fri Sep 21, 2012 10:49am EDT
 
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* TSX up 23.13 points, or 0.19 percent, at 12,432.11
    * Bullion and crude prices help gold miners, oil stocks
    * Fed feel-good factor still evident
    * RIM falls more than 5 pct after service outage

    By Alastair Sharp
    TORONTO, Sept 21 (Reuters) - A rebound in crude oil and
bullion prices helped Toronto's benchmark stock index rise on
Friday morning as gold-mining and oil and gas shares jumped.
    Major producer Goldcorp Inc led the charge, gaining
1.6 percent to C$46.13, and Barrick Gold Corp added 0.8
percent to C$41.72 as the precious metal rose above $1,780 an
ounce for the first time since late February.
    Expectations that easier monetary policy would boost
liquidity, keep long-term interest rates low, and stoke
inflation fueled the bullion buying. 
    Oil companies also had a strong start, with Suncor Energy
 up 0.6 percent at C$33.24 and Canadian Natural Resources
 adding 0.8 percent to C$32.34 as concerns about crude
supplies boosted the price of oil even as lackluster global
economic growth kept demand subdued. 
    Investors said the feel-good effects of the U.S. Federal
Reserve's stimulus moves last week were still present in the
market, and that it would take a major negative shock to offset
that.
    "We had the wedding last week, opened the presents, and now
the couple is on their honeymoon," said Baskin Financial
portfolio manager Barry Schwartz. "There is not a lot of news to
focus on until they're back from the honeymoon."
    At 10:25 a.m. (1420 GMT) the Toronto Stock Exchange's
S&P/TSX composite index was up 23.13 points, or 0.19
percent, at 12,432.11.
    Helping sentiment was news that debt-plagued Spain is
considering cost-cutting measures as it races to meet the
conditions of a sovereign aid package. 
    Shares of Macdonald, Dettwiler and Associates moved
0.7 percent higher to C$51.95 after a U.S. government committee
approved its purchase of Loral Space and Communications Inc's
satellite manufacturing business. The deal still needs approval
from U.S. antitrust regulators. 
    Shares in Research In Motion were down 5.6 percent
at C$6.37 after it said it had suffered some service problems in
Europe, just as its rival Apple Inc started selling its new
iPhone around the world.