CANADA STOCKS-TSX rises as commodities, earnings impress

Thu Jul 29, 2010 11:18am EDT
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* TSX up 65.15 points at 11,762.21

* Resources, financials lead index higher (Updates with details, commentary)

By Claire Sibonney

TORONTO, July 29 (Reuters) - Toronto's main stock index gained ground on Thursday morning as both resource and financial issues rallied on strong commodity prices and robust quarterly earnings from heavyweight companies.

"Earnings continue to be good and that gives a little more underlying confidence, and then with commodities doing better, that obviously helps as well," said John Kinsey, portfolio manager at Caldwell Securities.

Gold mining stocks advanced 0.5 percent following a slew of rosy corporate results, helped by record bullion prices, and as the price of the precious metal firmed.

Barrick Gold ABX.TO climbed 1.2 percent to C$42.12, after the world's largest gold producer posted a 59 percent gain in profit and raised its dividend by 20 percent. Eldorado Gold Corp ELD.TO jumped 1.2 percent to C$16.60 after the miner reported its profit more than doubled. [ID:nN29200421] [ID:nSGE66S0ER]

"For about a week the commodity had been sliding and that was affecting the stocks. But the stocks, now, I think should have some basing ... because earnings were very good and there's no reason now with higher production and high gold prices that going forward their earnings shouldn't be good as well," added Kinsey.

However, Goldcorp Inc G.TO fell 0.2 percent to C$40.38 and Agnico-Eagle AEM.TO was flat at C$57.27 after initially being up. [ID:nN28234234]   Continued...