CANADA STOCKS-TSX firms as golds rally

Fri Aug 19, 2011 10:30am EDT
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 *TSX up 12.03 points at 12,198.74
 *Banks down sharply, gold miners rally
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, Aug 19 (Reuters) - Toronto's main stock market
index firmed on Friday morning, following the previous
session's 3 percent drop, as fears of another U.S. recession
and a financial crisis in Europe were offset by a jump in
gold-mining shares as bullion prices hit a new high.
 Banks were among the most heavily weighted decliners, down
more than 1 percent. Toronto-Dominion Bank (TD.TO: Quote) fell 1.6
percent to C$72.84, Royal Bank of Canada (RY.TO: Quote) lost 1.2
percent to C$49.83, and Bank of Nova Scotia (BNS.TO: Quote) slipped
1.9 percent to C$51.47.
 Gold miners climbed nearly 2 percent. Barrick Gold (ABX.TO: Quote)
was up 2.4 percent at C$50.48 and Goldcorp (G.TO: Quote) advanced 2.1
percent to C$50.48.
 "The trade is still defensive right now," said Francis
Campeau, broker at MF Global Canada in Montreal.
 "A lot of people that argue the way the yield curve has
been shifting, how corporate bonds are widening, there are many
indicators that are pricing in another recession in the U.S.,"
he added.
 At 10:10 a.m. (1410), the Toronto Stock Exchange's S&P/TSX
composite index .GSPTSE was up 12.03 points, or 0.1 percent,
at 12,198.74.
 Campeau said that due to its heavy weighting in gold shares
and relatively stable financials, the TSX has outperformed its
U.S. and European counterparts for the past month.
 The market was focused on Bank of Canada Governor Mark
Carney's testimony to the House of Commons finance committee on
Friday morning.
 ($1=$0.98 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)