CANADA STOCKS-Gold miners drive TSX to near three-year high

Fri Feb 14, 2014 11:07am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* TSX rises 53.09 points, or 0.38 percent, to 14,054.74
    * Eight of the 10 main index sectors advance
    * Index up for ninth straight session
    * Gold-mining shares jump 3.5 percent, at 5-month high
    * Enbridge climbs after quarterly report

    By John Tilak
    TORONTO, Feb 14 (Reuters) - Canada's main stock index
climbed to its highest in nearly three years on Friday, boosted
by a jump in the bullion price that helped push up gold-mining
shares and by a gain in Enbridge after the pipeline
company reported quarterly results.
    Investors also cheered data showing the euro zone economy
grew in fourth quarter, beating market expectations, as strength
in Germany and France helped the region's recovery.
    Figures indicating a sharp drop in U.S. manufacturing output
in January, caused by cold weather, failed to dampen the
positive mood. 
    The rally in the gold-mining sector helped the benchmark
Canadian index climb for a ninth straight session. The gold
group, which is up about 30 percent this year, hit a five-month
high on Friday.
    "The market is very resilient. There's a fair amount of cash
out there," said Irwin Michael, portfolio manager at ABC Funds.
"The economically sensitive stocks, some of the miners and even
oil and gas companies, are holding up fairly well."
    "We believe that the economy is getting better, and people
have a little more comfort," he added.
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 53.09 points, or 0.38 percent, at 14,054.74,
after reaching its highest since early 2011.
    Eight of the 10 main sectors on the index were higher.
    Gold producers shot up 3.5 percent, supported by a 1.5
percent gain in the bullion price. In the group, Goldcorp Inc
 jumped 4 percent to C$30.81, and Barrick Gold Corp
 rose 2.6 percent to C$22.65.
    "Sentiment is changing (for the gold sector)," Michael said.
"People were expecting the worst-case scenario, but the worst
hasn't come to pass."
    Financials, the index's most heavily weighted sector,
climbed 0.3 percent. Bank of Nova Scotia was up 0.6
percent at C$63.54, and Toronto-Dominion Bank advanced
0.5 percent to C$49.21.
    Enbridge reported a fourth-quarter loss, mainly due to
losses on hedging contracts, but revenue jumped. The stock was
up 0.3 percent at C$47.49.