CANADA STOCKS-Strong gold price pushes TSX higher

Wed Sep 22, 2010 10:27am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *TSX up 22.64 points, or 0.19 percent, at 12,193.21
 *Seven of index's 10 main groups rise
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Sept 22 (Reuters) - Toronto's main stock index
climbed on Wednesday morning, boosted by rising prices for gold
and other commodities as the greenback slid after the U.S.
Federal Reserve raised expectations of more monetary-policy
easing.
 The index's materials group, home to miners and fertilizer
companies, was up 1 percent as gold and base-metals prices rose
as the U.S. dollar fell after the Fed expressed greater concern
on Tuesday about sluggish U.S. economic growth and low levels
of inflation. [ID:nTRU002490] [ID:nN20109053] [FRX/]
 Key names on the upside included First Quantum Minerals
FM.TO, up 0.8 percent at C$69.93, and Agnico-Eagle AEM.TO,
which rose 1.6 percent to C$71.37.
 Gold prices hit record highs above $1,295 an ounce in their
third day of gains. [GOL/]
 "I think it's how the market perceived the Fed being
prepared to do more quantitative easing, or how they're not
about to raise interest rates any time soon," said Francis
Campeau, a broker at MF Global Canada in Montreal.
 "It creates dilution of the U.S. dollar. The more you print
the paper the less it's worth," Campeau said.
 Around 10:00 a.m. (1400 GMT), the S&P/TSX composite index
.GSPTSE was up 22.64 points, or 0.19 percent, at 12,193.21,
near its 2010 high of 12,321.76, reached in late April.
 Seven of the TSX index's main sectors were higher. Other
areas of support included energy shares, up 0.1 percent, as oil
rose above $75 a barrel on the weaker greenback. [O/R] Suncor
Energy SU.TO climbed 0.3 percent to C$32.92.
 Potash Corp POT.TO, which traded flat near C$150.53, was
in the spotlight again after it said on Wednesday it filed a
lawsuit against BHP Billiton BHP.AX BLT.L that seeks to
block the mining giant's $39 billion hostile bid for the
Canadian fertilizer producer. [ID:nN22227579]
 ($1=$1.03 Canadian)
 (Reporting by Jennifer Kwan; editing by Peter Galloway)