September 4, 2009 / 2:49 PM / 8 years ago

CANADA STOCKS-TSX edges higher, but gold miners limit gains

 * TSX up 7.94 points, or 0.07 percent, at 10,929.43
 * Profit-taking hits gold-mining shares after two-day run
 * Canada, U.S. jobs data better than forecast  (Adds details)
 By Ka Yan Ng
 TORONTO, Sept 4 (Reuters) - Toronto’s main stock index seesawed around the unchanged mark on Friday morning as the effect of falling gold prices on mining shares was balanced by better-than-expected jobs data, which spurred hopes for economic recovery.
 At 10:20 a.m. (1420 GMT), the recovery hopes appeared to have the edge as the S&P/TSX composite index .GSPTSE was up 7.94 points, or 0.07 percent, at 10,929.43. The index had opened weaker.
 Eight of the index’s 10 main groups were higher, but the materials group, which includes gold miners, limited the index’s gains.
 After surging this week on higher prices, gold miners came under pressure on Friday as the price of the precious metal slipped below $990 an ounce. That knocked the index’s materials group down 1.5 percent.
 The energy group held slightly higher, up 0.6 percent, even though the price of oil fell below $68 a barrel.
 Heavyweight decliners were mostly from the index’s resource groups, with six gold companies in the top 10. Barrick Gold (ABX.TO) led all decliners, down 2.3 percent at C$42.65, while Goldcorp (G.TO) fell 2.5 percent. Kinross (K.TO), Iamgold (IMG.TO), Agnico Eagle (AEM.TO), and Yamana Gold (YRI.TO) also dropped.
 “Gold had a giant run in the last two days so it needs time to cool out,” said Douglas Davis, chief executive at Davis-Rea.
 Figures on Friday showed that Canada unexpectedly added jobs last month [ID:nN04153956], while the U.S. nonfarm payrolls report showed the pace of layoffs eased from early this year. [ID:nN03530870]
 Both pieces of data were seen as another sign of the improving health of the economy.
 Movement on the stock market was likely to be volatile on Friday as liquidity is likely to dry up by noon with a long weekend ahead. Financial markets in Canada and the United States will be closed on Monday for Labor Day.
 ($1=$1.09 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                      

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