CANADA STOCKS-TSX rides record-high gold to strong finish

Tue Oct 6, 2009 4:56pm EDT
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 * TSX closes up 1.3 percent at 11,247.97
 * Gold miners lead way with gold price at record high
 * Energy shares rise on higher oil price
 * Australia rate hike boosts market sentiment
 (Adds details and comments)
 By Ka Yan Ng
 TORONTO, Oct 6 (Reuters) - Toronto's main stock index
jumped on Tuesday as economic recovery hopes got an unexpected
shot in the arm and record high gold prices boosted shares of
Barrick Gold  ABX.TO and other gold miners.
 Market heavyweight Barrick was up 3.98 percent at C$41.25,
making it the day's top gainer. Shares of fellow miner Goldcorp
G.TO were not far behind, up 4.8 percent at C$44.22.
 Yamana Gold YRI.TO gained 7.6 percent to C$12.05 after it
said third-quarter production rose 9 percent from the previous
quarter, while costs remained in line with  expectations.
 Gold prices hit a record high above $1,040 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/].
 Also, 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, the second-biggest
contributor to the index's gain, advanced 2.7 percent to
C$36.45, while shares of Talisman Energy TLM.TO rose 5.5
percent to C$19.29.
 The S&P/TSX composite index .GSPTSE finished with a
triple-digit gain for a second straight session, up 145.35
points, or 1.3 percent, at 11,247.97, recovering another
portion of last week's 4.3 percent slide.
  Eight of the index's 10 sectors were higher, led by a 4.14
percent surge in the materials group, which is home to gold
 "It looks like last week's caution has been replaced by
something that is beginning to resemble euphoria at this
stage," said Elvis Picardo, analyst and strategist at Global
Securities in Vancouver.
 Gains were strong from the get-go with sentiment getting a
boost from the Reserve Bank of Australia's decision to raise
interest rates, making it the first G20 central bank to hike
rates. The unexpected move gave credence to the view that the
recession is easing. [ID:nSYD520296]
 ($1=$1.06 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)