CANADA STOCKS-TSX gains as golds, oils surge higher

Wed May 12, 2010 11:18am EDT
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* TSX gains 0.98 percent to 12,118.51

* Broad gains helped by strong commodities

* Barclays raises Canadian bank sector to positive (Adds details)

By Ka Yan Ng

TORONTO, May 12 (Reuters) - Toronto's main stock index rose sharply on Wednesday morning as commodity issues surged after Spain announced tough austerity measures that eased fears that euro zone debt problems would hamper economic growth.

Gold producers added to Tuesday's gains as the precious metal flew to a record high on lingering sovereign debt worries, while the price of oil held above $76 a barrel. That sent the materials and energy groups up 1.36 percent and 1.4 percent respectively.

EnCana ECA.TO rose 1.5 percent to C$32.79, while Barrick Gold ABX.TO climbed 1.7 percent to C$47.66. Cameco CCO.TO rose 2.42 percent to C$25.78 while Kinross Gold K.TO gained 2.2 percent to C$19.58.

At 10:55 a.m. (1455 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 117.90 points, or 0.98 percent, at 12,118.51, rising for a third straight day.

Fears related to European debt troubles last week took the index to a loss for the year, it but bounced back after the announcement of a mammoth emergency aid package in Europe.   Continued...