CANADA STOCKS-TSX rises as oils, gold miners buck Europe fears

Fri Nov 25, 2011 11:28am EST
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 * TSX up 37.57 pts, or 0.3 pct, at 11,522.89
 * Materials, energy lead index's gains
 * Italian, German bond sales drag
 (Adds details) 
 By Jon Cook
 TORONTO, Nov 25 (Reuters) - Toronto's main stock index was
higher on Friday morning as energy and gold-mining issues rose,
overshadowing fears that the euro zone's debt crisis was
deepening after another round of poor Italian and German bond
 The index's heavily weighted materials sector led the
gains, rising nearly 1 percent on the back of a minor rally by
gold miners as investors looked past a drop in bullion prices.
Barrick Gold (ABX.TO: Quote) was the biggest mover, jumping 2.3
percent to C$50.69.
 Oil and gas issues, up 0.6 percent, also contributed to the
halt of the index's two-day slide. Suncor Energy (SU.TO: Quote) led
the sector, up 0.7 percent to C$28.96.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE was up 37.57 points, or 0.3 percent, at 11,522.89,
after opening lower at 11,483.85.
 Italy paid a record 6.5 percent to borrow money over six
months and its longer-term funding costs soared far above
levels seen as sustainable for public finances. German Bund
prices also dropped, reinforcing fears that debt contagion is
starting to hurt the euro zone's soundest economy. [MKTS/GLOB]
 Earlier in the week, a poor German bond sale sent markets
into a tailspin.
 "We're getting to the point where a lot of that has been
discounted," said Rick Hutcheon, president and chief operating
officer at RKH Investments. "The Italian bond sale today
appears to have been a bit of a flop yet the market is not
paying that much attention to it."
 Canadian financial stocks, which have minimal exposure to
euro zone debt holdings, were little changed. Insurer Manulife
Financial (MFC.TO: Quote) was among the better performers, rising 1.4
percent to C$10.92
 Activity was light as many U.S. traders took the day off
after Thursday's Thanksgiving holiday. "We'll see a very
lackluster, trendless, low volume kind of day here," Hutcheon
 ($1=$1.05 Canadian)
 (Reporting by Jon Cook; editing by Peter Galloway)