CANADA STOCKS-TSX follows gold miners to higher close

Tue Sep 29, 2009 5:15pm EDT
 
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 * TSX rises 56.27 points to 11,394.99
 * TSX closes higher for second session in row
 * Gold-miners power latest rally
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Sept 29 (Reuters) - Toronto's main stock index
rose on Tuesday as shares of gold miners rallied on increased
optimism about the outlook for the industry and bullion prices
as they held near $1,000 an ounce.
 Goldcorp G.TO, the biggest contributor to the overall
gain, rose 3.5 percent to C$43.28, followed by Barrick Gold
Corp ABX.TO, up 2.8 percent at C$40.67.
 Kinross Gold K.TO chipped in with a gain of 4.8 percent
to C$23.43 as the company told Bloomberg News said it could see
a 57 percent rise in gold production over the next five years
if it goes ahead with new mines and expansions.[ID:nN29162295]
 The rally in gold miners helped lift the index's materials
group 1.92 percent, the biggest gain among the TSX's 10
sectors. The utilities group, down 0.14 percent, was the only
sector in lower territory.
 "It's definitely the gold stocks that have been the
standout performers today as gold is still very close to the
$1,000 per ounce level," said Elvis Picardo, analyst and
strategist at Global Securities in Vancouver.
 "But there was not much conviction in the move since there
is just one session left for the quarter and so the buyers are
just sticking to the sidelines for now."
 The S&P/TSX composite index .GSPTSE finished the session
up 56.27 points, or 0.5 percent, at 11,394.99. It was the TSX's
second straight higher close since it fell on Friday to its
lowest level in nearly two weeks.
 Capping the gain in the TSX were a handful of influential
energy shares that slipped alongside oil prices as the U.S.
government lowered its estimate for July oil demand. [O/R]
 That helped drag shares of Canadian Natural Resources
CNQ.TO down 1.2 percent to C$72.50 while shares of Suncor
Energy SU.TO fell 0.8 percent to C$37.20.
 Earlier in the session the TSX gained some support from
data showing consumer confidence in Canada improved for the
seventh straight month in September. [ID:nN29135851]
 "If people are feeling better about their circumstances,
presumably that's because they're feeling more comfortable
about their jobs and they're not going to be defaulting on
their mortgages and their credit cards, which obviously is good
news for financials," said Gavin Graham, director of
investments at BMO Asset Management.
 Among financial shares buoying the TSX, Toronto-Dominion
Bank TD.TO rose 0.89 percent to C$69.49, while Bank of Nova
Scotia BNS.TO gained 1 percent to C$48.94. The financial
sector, which accounts for about 33 percent of the index, ended
the session 0.25 percent higher.
 ($1=$1.09 Canadian)
 (Additional reporting by Jennifer Kwan; Editing by Frank
McGurty)