CANADA STOCKS-TSX clings to modest gain as gold shares rally

Wed Oct 7, 2009 10:36am EDT
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 * TSX up 41.19 points at 11,289.16
 * Gold-miners up on record gold price
 * Energy shares offset much of the gain
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 7 (Reuters) - Toronto's main stock index was
higher on Wednesday as gold-miners like Barrick Gold Corp
(ABX.TO: Quote) rose on record bullion prices, but the move was
limited as investors avoided huge commitments after big gains
earlier this week.
 Barrick shares, one of the key drivers behind the early
gain, were up 0.75 percent at C$41.56, while Kinross Gold
(K.TO: Quote) rose 0.8 percent to C$23.56.
 The rally in gold-mining shares came as the price of gold
hit a record high as mounting worries about inflation enticed
more investors toward the precious metal. [GOL/]
 But after a pair of triple-digit gains to start the week,
the TSX was unable to sustain the torrid pace as traders opted
to unload energy shares even as oil prices rose for the third
straight day. [O/R]
 Shares of EnCana Corp (ECA.TO: Quote) were down 0.2 percent at
C$61.27 while Talisman Energy TLM.TO was 0.57 percent lower
at C$19.19.
 The two companies led a 0.5 percent drop in the energy
group and helped erase a 50-point advance in the TSX early in
the session. The TSX eventually fell as much as 53 points
before moving back into higher territory.
 At 10:25 a.m. (1425 GMT), the S&P/TSX composite index
.GSPTSE was up 41.19 points, or 0.37 percent, at 11,289.16.
 "We had two good days in the market and I think the market
is just resting here right now," said Bruce Latimer, trader at
Dundee Securities. "There is certainly not a lot of conviction
on the sell side and the buyers are quite content to be patient
at these levels."
 ($1=$1.06 Canadian)
 (Editing by Jeffrey Hodgson)