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

Fri Sep 4, 2009 10:48am EDT
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 * 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
 "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)