February 1, 2010 / 3:50 PM / in 8 years

CANADA STOCKS-TSX rises, gold miners lead on higher prices

* TSX up 1.31 percent at 11,240.16

* Golds help push up materials group

* U.S. manufacturing sector grows more than expected (Adds details)

By Ka Yan Ng

TORONTO, Feb 1 (Reuters) - Toronto’s main stock market index rose across the board on Monday morning with some heavyweight resource groups leading the way on rising commodity prices.

The price of gold extended gains towards $1,090 an ounce, while oil stabilized around $73 a barrel, prompting sharp gains in the index’s energy and materials groups, which rose 1.6 percent and 3 percent, respectively.

Barrick Gold (ABX.TO) led all heavyweight gainers, rising 3.1 percent to C$38.27, while Canadian Natural Resources (CNQ.TO) climbed 1.4 percent to C$69.21. Goldcorp (G.TO) was up 2.9 percent at C$37.28.

“Gold has been very oversold in the month of January so we’re getting a bounce today,” said John Ing, president of Maison Placements Canada.

At 10:23 a.m. (1523 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 145.85 points, or 1.31 percent, at 11,240.16. All of its 10 main groups were higher.

The index held higher as U.S. factory data gave further proof of a U.S. economic recovery. The U.S. manufacturing sector grew more than expected in January, and added to strong factory figures from China, Australia and the euro zone. [ID:nWEN9407] [ID:nLDE6100W3]

U.S. President Barack Obama projected on Monday the U.S. budget deficit would hit a record high in 2010 before easing, which helped push gold higher as an alternative investment to U.S. dollars. [ID:nWEQ003761]

Investors were able to look past overseas markets, which were stung by worries over Greek government debt and Chinese inflation, and the Toronto index left behind a dismal January during which it fell for three straight weeks. [MKTS/GLOB]

$1=$1.07 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway

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