CANADA STOCKS-TSX jumps on gold rally, rising banks

Thu Sep 3, 2009 4:34pm EDT
 
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 * TSX up 220.17 points, or 2.06 percent, at 10,921.49
 * Materials sector up 3.9 percent as gold nears $1,000/oz
 * Financials rise after two straight down days
 (Updates closing numbers, adds details, quote)
 TORONTO, Sept 3 (Reuters) - Toronto's main stock index
closed higher for a second straight day on Thursday as surging
bullion prices lifted gold miners and market sentiment was
boosted by a strong performance in Chinese stocks.
 Top gainers included gold miners Barrick Gold ABX.TO, up
4.1 percent at C$43.66, and Goldcorp Inc G.TO, up 4.2 percent
at C$45.68, as gold prices neared $1,000 an ounce.
 Base metals prices were also higher and the index's
materials sector, which takes in miners, was up 3.9 percent.
 "The gains have been fairly broad based but the materials
sector has been the key driver," said Fergal Smith, managing
market strategist at Action Economics.
 "Both base and precious metals have advanced. The huge
rally on the Shanghai composite overnight helped boost market
sentiment and sparked rotation back into the riskier assets."
 The S&P/TSX composite index .GSPTSE closed up 220.17
points, or 2.06 percent, at 10,921.49.
 Emerging markets .MSCIEF and Shanghai stocks .SSEC
climbed after China's top regulator assured investors that the
country's market was healthy. [ID:nHKG249919]
 The health of Chinese stocks has often been seen lately as
a barometer of economic optimism.
 Banks were also strong performers in Toronto, and the
index's financials group rose 2 percent following
better-than-expected earnings from a pair of regional banks.
[ID:nN039427]
 "We had a modest pullback in the previous days so that's
improved valuations," said Elvis Picardo, analyst and
strategist at Global Securities in Vancouver.
 "More importantly, you had two of the smaller banks come
out with results that beat expectations. That's again focused
attention on how well Canadian financial stocks in general have
been doing, and I think that's attracted more buying to the
table."
 Among the top banking gainers were Royal Bank of Canada
RY.TO, up 1.9 percent at C$55.79, and Toronto-Dominion Bank
TD.TO, up 2.6 percent at C$65.95.
 ($1=$1.10 Canadian)
 (Reporting by Jennifer Kwan and Ka Yan Ng; editing by Peter
Galloway)