CANADA STOCKS-TSX hits near 7-week high on commodity price jump

Fri Jul 22, 2011 5:45pm EDT
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   * TSX up 60.33 points, or 0.45 percent at 13,494.63
 * Seven of 10 main sectors higher
 * Mining, energy drive gains as resource prices rally
 (Adds further details)
 By Trish Nixon
 TORONTO, July 22 (Reuters) - Toronto's main stock index
closed at its highest level in nearly seven weeks on Friday, as
mining and energy company shares rallied on stronger commodity
 The materials sector, home to influential gold and base
metal miners, led the index with a 1.42 percent rise. Energy
stocks rose 0.38 percent. Together the sectors make up roughly
50 percent of the composite index.
 The market was led higher by GoldCorp (G.TO: Quote), up 2.57
percent to C$51.47, Potash Corp  (POT.TO: Quote), up 2.04 percent to
C$58.50, and Barrick Gold (ABX.TO: Quote), up 1.6 percent to C$47.62.
 The price of gold stood about 1 percent higher, nearing the
record high, as reservations over a bailout plan for debt-laden
Greece and concerns over talks to raise the U.S. debt ceiling
spurred safe-haven buying of precious metals. [GOL/]
 "No question gold is helping us out here today," said Barry
Schwartz, a portfolio manager at Baskin Financial Services.
 "I would imagine people are looking at (gold-mining stocks)
and doing a double take, and wondering, 'If gold is at $1600 an
ounce, Barrick Gold and Goldcorp and the like have a license to
print money.'"
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed up 60.33 points, or 0.45 percent, at
13,494.63. Seven of its 10 main groups were higher.
 It reached an intra-day high of 13,516.17, its strongest
level since June 6.
 The Toronto market advanced along with commodity prices
even as anxiety over the absence of a U.S. debt compromise and
implementation of the second round of the Greek debt plan
weighed on U.S. markets. [MKTS/GLOB]
 The Thomson Reuters-Jefferies CRB index .CRB, a global
commodities benchmark, rose 0.77 percent.
 "Commodities have themselves managed to buoy the Canadian
stock market," said Michael Sprung, president of Sprung & Co
Investment Counsel.
 Other influential gainers on the index included Precision
Drilling Corp (PD.TO: Quote), which reported a profit for a fourth
straight quarter on Friday. Shares of Canada's largest oil and
gas drilling contractor were up 8.45 percent to C$16.69.
 Celestica Inc's (CLS.TO: Quote) stock rose 10.57 percent to C$8.89
after the contract electronics manufacturer reported its
quarterly profit tripled as new business awards pushed revenue
 Decliners included Thomson Reuters Corp (TRI.TO: Quote), which
fell after it said five more senior executives are leaving in a
shake-up of its Markets division, which has posted
disappointing revenue growth amid slow sales of a key new
product. [ID:nN1E76L0QZ]
($1=$0.95 Canadian)
 (Editing by Jeffrey Hodgson)