CANADA STOCKS-TSX rises sharply as resource stocks rally

Tue Oct 6, 2009 10:16am EDT
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 * TSX up 202.88 points at 11,305.50
 * Gold-mining and energy shares lead rally
 * Australia rate hike boosts sentiment
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 6 (Reuters) - Toronto's main stock index was
up nearly 2 percent on Tuesday morning as Goldcorp (G.TO: Quote) and
other gold-mining shares jumped as gold prices hit a record
high, and energy shares rose on higher oil prices.
 Shares of Goldcorp were up 4.8 percent at C$44.23, while
Barrick Gold Corp (ABX.TO: Quote) followed with a gain of 3.4 percent
to C$41.04.
 Gold prices rose to a record high of $1,036.40 an ounce
after a media report, later denied, that Gulf Arab states were
in talks to abandon the U.S. dollar in oil trade. [GOL/]
 Energy shares got a boost after a U.S. government agency
raised its forecast for world oil demand for the fourth quarter
[O/L], lifting oil prices above $71 a barrel.
 Shares of Suncor Energy (SU.TO: Quote), the biggest contributor to
the index's gain, were up 2.6 percent at C$36.42, while shares
of Talisman Energy TLM.TO rose 4.1 percent to C$19.04.
 At 10:00 a.m. (1400 GMT), the S&P/TSX composite index
.GSPTSE was up 202.88 points, 1.83 percent, at 11,305.50.
 Also helping boost investor sentiment was the Reserve Bank
of Australia's decision to raise interest rates, making it the
first G20 central bank to hike rates. The move gave credence to
the view that the recession is easing.
 "There's a general rotation into riskier assets including
equities and commodities," said Fergal Smith, managing market
strategist at Action Economics.
 "The rate hike perse is not good for equities, but it does
provide tangible evidence that central bankers are getting
comfortable with (the idea of a) recovery."
 ($1=$1.06 Canadian)
 (Editing by Peter Galloway)