CANADA STOCKS-TSX gains on euro zone relief, golds drag

Wed Sep 14, 2011 4:57pm EDT
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 * TSX rises 87.90 points, or 0.72 percent, at 12,293.38
 * Nine of 10 main sectors higher
 * Energy stocks lead gains; golds drag
 (Updates to close. Adds details, commentary)
 By Trish Nixon
 TORONTO, Sept 14 (Reuters) - Toronto's main stock index
rose along with global equities on Wednesday, as European
leaders displayed new urgency in efforts to contain the euro
zone debt crisis.
 Comments from Europe's top bureaucrat that plans for a
common euro zone bond, seen by many as a key tool to ease the
region's debt crisis, would soon be presented helped restore
investor appetite for risk and gave an early boost to equity
markets. [MKTS/GLOB]
 Adding to relief, Italian Prime Minister Silvio Berlusconi
won a confidence vote on an austerity plan for the euro zone's
third-largest economy, and German and French leaders urged
Greece to implement all financial reforms "strictly and
effectively" to ensure continued euro zone assistance and
reduce any chance of a debt default. [ID:nP6E7JV05E]
 "It appears that the confidence pendulum has swung in the
favor of European contagion not spreading, therefore world
growth not being threatened, therefore more confidence in
second half of 2011 growth," said Robert McWhirter, a portfolio
manager at Selective Asset Management Inc.
 Shares of oil and gas companies, which have been hit hard
during recent downturns, gained 2.07 percent to lead Toronto's
 Suncor Energy SU.TO was the most influential advancer,
adding 3.1 percent to C$29.44, while Cenovus Energy CVE.TO
rose 3.5 percent to C$33.02 and Canadian Natural Resources
CNQ.TO gained 2.2 percent to C$34.45.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed the session up 87.90 points, or 0.72 percent,
at 12,293.38. Nine of the 10 main index sectors gained.
 Gold mining stocks dragged the broader materials sector
down 0.4 percent as the price of gold fell, causing the TSX to
lag U.S. markets. [GOL/]
 "(Gold stocks) fit in well to the short term rotational
volatility," said Michael Smedley, chief portfolio manager at
Morgan Meighen & Associates.
 "Nevertheless, the longer view is still of a strong gold
price ... It's going to continue to be a sector of interest."
 Goldcorp G.TO was the heaviest drag on the index, falling
1.8 percent to C$50.37, while Barrick Gold ABX.TO lost 1.1
percent to C$52.16.
 (Editing by Jeffrey Hodgson)