October 17, 2013 / 2:56 PM / 4 years ago

CANADA STOCKS-TSX gains as gold miners surge after U.S. debt deal

* TSX up 8.67 points, or 0.07 percent, at 12,965.88

* Gold miner gain helps TSX rise while U.S. indices slip

* Telecoms weigh after government pushes on roaming, TV bundles

By Alastair Sharp

TORONTO, Oct 17 (Reuters) - Canada’s main stock index moved slightly higher on Thursday as investors seemed unimpressed with the short-term deal reached to avoid a U.S. debt default and bought into gold and its miners on an expected delay to U.S. stimulus reduction.

The U.S. Congress on Wednesday approved an 11th-hour deal to end a 16-day partial government shutdown and pull the world’s biggest economy back from the brink of a historic debt default that could have threatened financial calamity.

”The reaction to the debt deal was played into the markets yesterday, said Gareth Watson, a vice president for investment management and research at Richardson GMP. “Today is a new day.”

The deal funds the government until Jan. 15 and raises the debt ceiling until Feb. 7.

Gold miners led the resource-rich index’s gainers, as the price of the precious metal surged 3 percent on a belief that a planned cut in Federal Reserve stimulus may be delayed.

“The Canadian market is holding up better than the American exchanges because we are seeing a bright spot in gold prices,” Watson said.

Goldcorp Inc surged 4.7 percent to C$25.55 and Kinross Gold added 3.9 percent to C$5.05.

Fortuna Silver Mines Inc jumped 10.6 percent to C$3.66 after it increased its estimate of silver reserves in a Mexican mine 22 percent.

The Toronto Stock Exchange’s S&P/TSX composite index was up 8.67 points, or 0.07 percent, at 12,965.88 by mid-morning.

The materials sector, which includes gold miners, was the one main group on the Toronto exchange trading in positive territory, with industrials and telecom companies weighing.

In a speech outlining its legislative priorities, the Canadian federal government late on Wednesday said it plans to lower mobile roaming rates and force television distributors such as Shaw Communications Inc, Rogers Communications Inc and BCE Inc to unbundle television channels from expensive all-in packages.

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