UPDATE 3-Toronto stocks get small boost from resources

Mon Jan 28, 2008 12:10pm EST
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(Updates numbers, adds details, quotes)

TORONTO Jan 28 (Reuters) - The Toronto Stock Exchange's main index recovered earlier losses and nudged into positive territory late on Monday morning, propped up by strengthening resource shares.

After falling more than 100 points shortly after the open, the S&P/TSX composite index .GSPTSE was up 21.20 points, or 0.16 percent, at 12,916.03. But eight of the TSX's 10 main sectors were stuck in negative territory.

Strength in the materials sector, home to resource shares, supported the index as the group climbed 1.3 percent. The gold producers subsector was up 1.1 percent as spot gold reached a record high above $924 an ounce.

The price of bullion was boosted by a power crisis in South Africa, a major gold producer, that has cut output and raised concerns over supply.

In Toronto, Kinross Gold (K.TO: Quote) rose 55 Canadian cents, or 2.5 percent, to C$22.83, while Barrick Gold (ABX.TO: Quote) was up 96 Canadian cents, or 1.8 percent, at C$53.45.

Also in the materials sector, Potash Corp of Saskatchewan (POT.TO: Quote) gained C$4.02, or 3 percent, to C$138.00.

But investors were cautious after last week's turbulence, which saw the index swing wildly up and down as fears continued to swirl around the possibility of a U.S. recession.

"I think people are really digesting here what's happened the last week, and seeing a few buying opportunities," said Brian Pow, vice president, research and equity analyst at Acumen Capital Partners, in Calgary, Alberta.   Continued...