CANADA STOCKS-TSX rides railways, gold price to higher close

Tue Nov 3, 2009 4:44pm EST
 
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 * TSX ends up 147.55 points at 11,025.90
 * Record high gold price boosts gold miners
 * Railways rise on Buffett's deal for Burlington Northern
 (Adds closing figures, adds quotes)
 By Jennifer Kwan
 TORONTO, Nov 3 (Reuters) - Toronto's main stock index shot
higher on Tuesday as gold prices hit a record high above $1,080
an ounce, boosting Barrick Gold Corp ABX.TO and other gold
miners.
 Barrick rose 6.6 percent to C$41.97 and Goldcorp G.TO
climbed 7 percent to C$42.96. Yamana Gold YRI.TO shot 7.6
percent higher to C$12.54. The index's materials group, home to
miners and fertilizer companies, finished the day up 4.1
percent.
 The price of gold hit a record high at $1,080 an ounce on
Tuesday, as investors embraced news of the International
Monetary Fund's 200 tonne sale of gold to India's central bank.
[GOL/]
 As well, strength in railway stocks helped to lift the
index after news that Warren Buffett's Berkshire Hathaway will
buy rail company Burlington Northern Santa Fe Corp in a $26
billion deal. [ID:nN03483590]
 "There's some commentary that suggests this is a bet on the
United States and the economy going forward," said Rick Meslin,
head of Canadian equities at UBS. "Mr. Buffett still carries a
lot of weight and him calling the rails a value bet is saying a
lot about the overall industrial sector."
 Canadian National Railway CNR.TO shares climbed 1.8
percent to C$53.50, while Canadian Pacific Railway CP.TO
shares rose 3.2 percent to C$48.75.
 The S&P/TSX composite index .GSPTSE was up 147.55 points,
or 1.36 percent, at 11,025.90. Earlier it had fallen more than
1 percent to 10,751.72.
 ($1=$1.07 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)