CANADA STOCKS-Gold miners help drive TSX to higher close

Tue Sep 20, 2011 4:57pm EDT
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   * TSX rises 37.84 points, or 0.31 percent, to 12,209.88.
 * Six of 10 sectors higher; gold stocks drive gains
 (Updates to close. Adds analyst comments)
 By Trish Nixon
 TORONTO, Sept 20 (Reuters) - Surging gold miners pushed
Toronto's main stock index to a higher close on Tuesday in a
market rally helped by investor hopes that the U.S. Federal
Reserve will offer more economic stimulus.
  At the end of its two-day meeting on Wednesday, the Fed is
expected to announce plans to intervene in the bond market to
push long-term interest rates -- already near historic lows --
even lower in a move known as Operation Twist. [FED/AHEAD]
 "The market is optimistic that the Fed might introduce more
stimulus in terms of making some new policies to provide more
liquidity," said Marcus (Ming) Xu, director of equity
investments at Genus Capital Management in Vancouver.
 "If the liquidity is there, the market will like it ... if
it's something else, it could induce more volatility."
 Gold miners led the gains on the TSX, lifted by the price
of bullion. Gold was set for its biggest daily gain in over a
week after a downgrade to Italy's credit rating added to the
strain on European leaders to solve the region's debt crisis.
 Goldcorp (G.TO: Quote) was the top heavy-weight advancer, up 5.2
percent at C$52.62, followed by Barrick Gold (ABX.TO: Quote), which
rose 1.6 percent to C$53.72.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended the session up 37.84 points, or 0.31 percent,
at 12,209.88. Six of 10 main sectors were higher.
 Banks and insurers helped support the index, adding 0.3
percent. Royal Bank of Canada (RY.TO: Quote) was among the most
influential advancers, up 0.9 percent at C$47.04.
 But base-metal miners dragged, extending losses from the
previous session as copper closed down near nine-month lows.
Concerns that the global economic slowdown will crimp demand
were compounded by an International Monetary Fund downgrade to
its forecast for world growth. [MET/L]
  Potash Corp (POT.TO: Quote) lost 3.1 percent to C$51.72, while
Teck Resources TCKb.TO fell 4.1 percent to C$36.11 and First
Quantum Minerals (FM.TO: Quote) lost 7.6 percent to C$17.94.
 ($1=$0.99 Canadian)
 (Editing by Jeffrey Hodgson)