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
 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
 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.
 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)