CANADA STOCKS-Toronto up despite sliding resource prices

Thu Oct 30, 2008 11:41am EDT
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* Energy issues up but off highs as crude falls

* Relief as U.S. contraction milder than expected

* Barrick posts 26 pct drop in profit

TORONTO, Oct 30 (Reuters) - The Toronto Stock Exchange's main index rose more than 1 percent on Thursday morning, supported by relief that the U.S. economy did not contract as much as expected in the third quarter, and even as commodity prices turned lower.

Preliminary data showed U.S. third-quarter gross domestic product shrank 0.3 percent, les than the 0.5 percent drop forecast by economists [ID:nN29534671], adding to the positive sentiment seen in Asian and European stock markets.

Shortly after 11:05 a.m., the S&P/TSX composite index .GSPTSE was up 110.00 points, or 1.16 percent, at 9,611.56. Nine of the index's 10 main groups were advancing.

The rise builds on two straight days of gains as investors have started to buy resource-related issues once more after tracking the decline of commodity prices since September and a period of extreme volatility on the overall index.

The TSX is down 18 percent so far this month.

"The appetite for risk is slowly coming back onto the market. It shows that the measures, or the panic, is fading a bit," said Francis Campeau, broker at MF Global Canada, in Montreal. He characterized the U.S. data as "a breather."   Continued...