CANADA STOCKS-TSX jumps on gold rally, rising banks

Thu Sep 3, 2009 5:04pm 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 days on the wane (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 a strong performance in Chinese stocks further brightened market sentiment.

Top gainers included Barrick Gold (ABX.TO: Quote), up 4.1 percent at C$43.66, and Goldcorp Inc (G.TO: Quote), up 4.2 percent at C$45.68, as the precious metal neared $1,000 an ounce.

Base metals prices were also higher and the index's materials sector, which includes 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.   Continued...