CANADA STOCKS-TSX hits 2009 high as gold, oil prices rise

Tue Sep 8, 2009 10:30am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX up 87.23 points, or 0.79 percent, at 11,104.70
 * Hits highest level since Oct. 3, 2008
 * Materials, up 1.5 percent, lead TSX higher
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Sept 8 (Reuters) - Toronto's main stock market
index hit its 2009 high on Tuesday as robust oil and bullion
prices lifted the resource-laden market, and firm global
equities kept investors' risk appetite on the rise.
 Gold powered through the $1,000 per ounce psychological
barrier on Tuesday, carried by a wave of pent-up technical
momentum and dollar weakness, with some analysts eyeing last
year's record high at $1,030.80.[GOL/]
 Barrick Gold (ABX.TO: Quote) shot up 0.9 percent to C$43.88 and
Goldcorp (G.TO: Quote) was up 0.4 percent at C$45.14. The broader
materials group, home to miners and fertilizer companies, was
up 1.5 percent.
 "As the economy continues to improve there is increased
demand for commodities. That's helping out the Canadian market
today," said Steve Ibel, institutional equities trader at
Beacon Securities, in Halifax, Nova Scotia.
 At 10:01 a.m. (1401 GMT), the S&P/TSX composite index
.GSPTSE was up 87.23 points, or 0.79 percent, at 11,104.70.
Seven of its 10 main groups were higher.
 At one point the index hit 11,176.35, its highest level
since Oct. 3, 2008.
 Also leading the way higher was Suncor Energy (SU.TO: Quote), up
2.2 percent to C$34.74, and Canadian Natural Resources (CNQ.TO: Quote)
which climbed 2 percent to C$64.80. Oil prices rose above $69 a
barrel on Tuesday ahead of an OPEC meeting, which analysts said
would see more target compliance rhetoric but no change in
output limits. [O/R]
 The index closed above the 11,000 level on Friday for the
first time since early August, and the market is up 45 percent
from its early March low levels.
 "If it can stay above that level for a couple of days in
all likelihood will start trading above and creating a higher
trend," Ibel said of the 11,000 level.
 "People will be watching it closely."
 Among individual names, Barrick, the world's largest gold
miner, said on Tuesday it has entered into an agreement to sell
25 percent of the life-of-mine silver production from its
Pascua-Lama project in South America to Silver Wheaton Corp
(SLW.TO: Quote). Silver Wheaton shares climbed 0.6 percent to
C$12.73.
 On the downside, Fairfax Financial Holdings Ltd (FFH.TO: Quote), a
top net loser, sank 2.3 percent to C$369.36. Earlier on Tuesday
it said it would offer about 2.9 million subordinate voting
shares at $347 each to fund its proposed acquisition of
reinsurer Odyssey Re Holdings Corp ORH.N shares that it does
not currently own. [ID:nBNG497014]
 ($1=$1.07 Canadian)
 (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)