CANADA STOCKS-Gold price helps lift Toronto index; Hudbay up

Fri Jan 23, 2009 10:32am EST
 
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* TSX rises as gold pushes materials up 3 percent

* Regulator orders HudBay shareholder vote; up 24.4 pct

TORONTO Jan 23 (Reuters) - The Toronto Stock Exchange's main index turned positive after a weak opening on Friday as strength in the price of gold and a rebound in energy issues overcame profit concerns and economic gloom.

Gold rose to above $870 an ounce to help the TSX's resource-laden material's group rise 3 percent with Barrick Gold (ABX.TO: Quote) up 5 percent to C$46.95.

HudBay Minerals (HBM.TO: Quote) was the second most heavily-traded stock on the benchmark index, rising 24.4 percent to C$4.38, after the Ontario Securities Commission ordered on Friday that HudBay hold a shareholders meeting before it proceeds with its planned C$550 million takeover of Lundin Mining (LUN.TO: Quote). [ID:nN23371375]

The decision raises the prospect that the deal will not go through.

"If there's a vote and the deal is voted down then they're not going to have that massive share dilution," said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia.

"If you're a current shareholder that's positive."

Lundin was the most heavily traded issue and tumbled 22 percent to 93 Canadian cents.   Continued...