CANADA STOCKS-TSX ends higher as golds gain

Mon Nov 7, 2011 5:22pm EST
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   * TSX up 53.73 points, or 0.43 pct at 12,461.98
 * Gold subindex hits 6-week high
 * Italy turmoil stokes new EU fears
 By Jon Cook
 TORONTO, Nov 7 (Reuters) - Toronto's main stock index
finished higher after a volatile session on Monday led by
surging gold issues, as bullion prices gained on renewed
concerns about the European debt crisis.
 After Greek political unrest held the market's attention
last week, investor focus switched to Italy, where speculation
that Prime Minister Silvio Berlusconi's government was on the
verge of collapse sparked fears the euro zone debt crisis could
overwhelm the region's third largest economy. [MKTS/GLOB]
 The Toronto Stock Exchange's subindex of gold producers
.SPTTGD, which often climbs on investor uncertainty, hit its
highest point since Sept. 22.
 Goldcorp (G.TO: Quote), finished up 3.6 percent at C$54.30, while
Barrick Gold (ABX.TO: Quote) gained 2.5 percent to C$53.54, as bullion
rose 2 percent and notched its biggest daily gain in two weeks
 "Given the weight of the TSX gold sector, which is roughly
13 percent, it's going to have a positive net effect for the
broader index," said Sid Mokhtari, market technician and
director of institutional equity research at CIBC World
 The move by gold miners helped lift the broader materials
sector, which rose 1.6 percent.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 53.73 points, or 0.43 percent, at 12,461.98,
after touching a monthly high of 12,485.20.
 The turmoil in Italy, one of Europe's biggest economies,
extended the European debt malaise that has embraced the region
and global markets for weeks.
 "The volatility has been unbelievable since the beginning
of July and it certainly looks like it wants to continue," said
Levente Mady, market strategist at Union Securities.
 Six of the TSX's main sectors finished higher, with
financial stocks ending flat.
 Manulife Financial Corp (MFC.TO: Quote) led decliners, falling 2
percent to C$12.54. Bank of Nova Scotia (BNS.TO: Quote) was down 0.2
percent to C$52.15.
 While Canadian banks have little direct exposure to
European debt, there is concern they could get swept up in a
widening economic crisis.
 Energy issues rode rising oil prices, which were boosted by
elevated concerns about Iran's nuclear program and recent North
Sea production disruptions. U.S. crude closed above $95 per
barrel, its highest price since August [ID:nN1E7A61U9]
 Suncor Energy Inc (SU.TO: Quote) led the sector's gains, rising
1.1 percent to C$33.26. Canadian Natural Resources Ltd (CNQ.TO: Quote)
rose 0.5 percent to C$37.93.
 In individual company news, Cameco Corp (CCO.TO: Quote) fell more
than 6 percent to C$20.35 after the uranium producer's
third-quarter operating profit fell short of expectations.
 (Editing by Rob Wilson)