CANADA STOCKS-TSX rallies as US optimism boosts oil shares

Thu Oct 29, 2009 10:20am EDT
 
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 * TSX up 181.81 points at 10,987.14.
 * Oil companies and gold miners drive rally
 (Adds details and comments)
 By Frank Pingue
 TORONTO, Oct 29 (Reuters) - Toronto's main stock index was
sharply higher on Thursday morning after four straight lower
closes as Canadian Natural Resources (CNQ.TO: Quote) and other energy
shares got a boost from expectations for U.S. economic growth.
 Shares of Canadian Natural Resources were up 2.7 percent at
C$72.38, while Suncor Energy (SU.TO: Quote) rose 2 percent to C$36.59.
The two companies were among the key drivers behind the early
rise.
 The rally in energy shares was aided by higher oil prices
after data from the United States, the world's biggest energy
consumer, showed the economy there returned to growth in the
third quarter. [ID:nN29354547]
 Gold-mining stocks also helped power the TSX rally as gold
prices rebounded from three-week lows as the U.S. dollar
weakened. A weak greenback benefits gold, often seen as an
alternative to the U.S. currency as an asset. [ID:nLT261249]
 Shares of Barrick Gold Corp (ABX.TO: Quote) were up 4.7 percent at
C$38.80, while Goldcorp (G.TO: Quote) rose 2.8 percent to C$39.84.
 Before the market opened, Barrick reported a third-quarter
net loss as it absorbed a charge to unwind gold hedges, but the
Canadian miner said core earnings rose. [ID:nN29507727]
 Other stocks on the move included Teck Resources (TCKb.TO: Quote),
which rose 3.9 percent to C$31.94 after the base metals miner
said its third-quarter profit rose 44 percent. [ID:nN28159071]
 Shares of Agnico-Eagle Mines (AEM.TO: Quote) dropped 7 percent to
C$61.42 after the company reported a net loss late on
Wednesday. [ID:nN28106314]
 At 10:10 a.m. (1410 GMT), the S&P/TSX composite index
.GSPTSE was up 181.81 points, or 1.68 percent, at 10,987.14.
 The TSX rally comes after a sharp slide on Wednesday that
left the index at its lowest level in nearly two months.
 "What a difference a day makes," said Bruce Latimer, trader
at Dundee Securities. "The U.S. dollar had been strong the last
few days which worked against the Canadian market, being a
commodity-driven market."
 ($1=$1.07 Canadian)
 (Reporting by Frank Pingue; editing by Peter Galloway)