CANADA STOCKS-TSX edges higher as gold-miners surge

Mon Aug 22, 2011 5:40pm EDT
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 * TSX up 60.89 points, or 0.51 percent, at 12,068.36
 * Seven of 10 sectors stronger, led by materials
 * Influential banking sector weighs
 (Adds further analyst comment, detail)
 By Trish Nixon
 TORONTO, Aug 22 (Reuters) - Toronto's main stock market
index closed moderately higher on Monday as investors searched
for value in beaten-down stocks and gold-mining issues surged
with the price of bullion, offsetting weakness in banks.
 Safe-haven gold hit a third consecutive all-time high near
$1,900 after staging its biggest weekly gain in 2-1/2 years
last week, driving the index's gold-mining sub-group up 4.2
percent. [GOL/]
 "It's a nervous nervous market that we have here, and
people are doing the flight to safety thing," said John Kinsey,
portfolio manager at Caldwell Securities Ltd.
 "For a change, the gold stocks participated. That has
really helped our market."
 Six of the top 10 influential gainers were major gold
mining stocks, with Goldcorp (G.TO: Quote) leading the way, up 4.8
percent at C$53.65. Barrick Gold (ABX.TO: Quote) added 2.6 percent to
C$51.64, and Kinross Gold (K.TO: Quote) jumped 5.1 percent to
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed off its earlier highs, but still up 60.89
points, or 0.51 percent, at 12,068.36. Earlier in the session
it climbed as high as 12,218.03.
 Seven out of 10 sectors were stronger, with the weighty
materials sector driving the gains, up 2.8 percent, and the
beaten-down telecommunications group rebounding 1.1 percent.
 The gains came after the TSX lost more than 4 percent last
week on concerns about a double-dip recession in the United
States and the debt crisis in Europe.
 "It's one day at a time," said Bruce Latimer, trader at
Dundee Securities. "We've just had such volatility in the last
two to three weeks, people will let the market find a bottom
rather than try to find the bottom themselves."
  Financial stocks continued to weigh on the market, sinking
0.7 percent. Bank of Nova Scotia (BNS.TO: Quote) was the heaviest
drag, down 2 percent to C$49.23, while Royal Bank of Canada
(RY.TO: Quote) fell 1 percent to C$48.48.
 "Tenor is sort of set by the European banks, and people are
very nervous about them," Kinsey added.
 The cost for euro zone banks to borrow money from one
another rose again on Monday, heading back toward their highest
levels since late 2008 as U.S. banks remained wary of lending
to European counterparts in the face of the intractable debt
crisis. [MMT/]
 Energy shares also dragged, sliding with the price of oil
as investors anticipated a resumption of oil exports from the
OPEC-member Libya, where rebels moved to control most of
Tripoli and an end to the six-month-old civil war seemed close.
 Suncor Energy (SU.TO: Quote) was the third most influential
decliner, down 1.3 percent to C$28.83.
 But positive news helped out some energy producers. Cenovus
Energy Inc (CVE.TO: Quote) was among the top gainers, adding almost 2
percent to C$32.77. The Alberta-based company said it has
started up the third phase of its Christina Lake oil sands
project as part of its long-term expansion of steam-driven
developments. [N1E77L1CX]
 Uranium producer Paladin Energy (PDN.AX: Quote) (PDN.TO: Quote) said on
Monday that it had signed sales agreements with three new
customers in the United States, sending its Toronto-listed
shares 3.5 percent higher to C$2.05. [NL4E7JM20D]     
 ($1=$0.99 Canadian)
 (Editing by Jeffrey Hodgson)