CANADA STOCKS-TSX gains as Ukraine fears ease, gold-mining shares jump
* TSX adds 51.77 points, or 0.36 percent, to 14,319 * Six of 10 main index sectors advance * Gold-mining stocks close up 3.1 percent By John Tilak TORONTO, March 12 (Reuters) - Canada's main stock index advanced on Wednesday as a jump in gold-mining shares and a gain in industrials helped drive the market after concerns about instability in Ukraine appeared to ease with heightened diplomacy. Investors followed developments in Ukraine, with the European Union agreeing to a framework for its first sanctions on Russia since the Cold War and the United States intensifying efforts to negotiate with Russia. However, recent sluggish data from China and news of the country's first bond default raised investor nervousness about the world's second-biggest economy. The London copper benchmark dropped in early trade to its lowest in about four years but rose later in the session. Those worries resulted in a rush to perceived safe-haven assets such as bullion, which jumped 1.5 percent and sent shares of gold producers up more than 3 percent. "We're seeing a mixed picture. At the moment, markets are consolidating," said Youssef Zohny, a portfolio manager at Stenner Investment Partners, a subsidiary of Richardson GMP. "Risk aversion is slowly creeping into the market because of concerns with the Chinese credit situation, as well as geopolitics," he added. "Whenever markets are pretty strong, there's always a risk of a healthy correction." The Toronto Stock Exchange's S&P/TSX composite index closed up 51.77 points, or 0.36 percent, at 14,319. With Wednesday's gains, the Toronto market is up about 5.1 percent this year. "Over time, as the global economic cycle improves, it does favor Canadian stocks," said Colin Cieszynski, senior market analyst at CMC Markets Canada, who sees any improvement in the United States or Europe benefiting the TSX. Six of the 10 main sectors on the index were higher on Wednesday. Industrial stocks rose. Canadian National Railway Co was up 2 percent at C$63.53 and Canadian Pacific Railway Ltd climbed 2.5 percent to C$174.07. Financials, the index's most heavily weighted sector, added 0.2 percent, with Toronto Dominion Bank climbing 0.4 percent to C$51.75. Gold-mining shares jumped the most in nearly 3 weeks. Goldcorp Inc shot up 4 percent to C$30.95, and Barrick Gold Corp advanced 2.9 percent to C$22.62. With oil prices selling off on concerns about demand, the energy sector slipped. Canadian Natural Resources Ltd lost 1.4 percent to trade at C$40.06.
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