CANADA STOCKS-Gold miner surge pushes TSX to 2-year high

Thu Oct 17, 2013 4:43pm EDT
 
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* TSX ends up 79.15 points, or 0.61 percent, at 13,036.36

* Gold miner gains help TSX outpace U.S. market

* Telecoms weigh after government pushes on roaming, TV bundles

By Alastair Sharp

TORONTO, Oct 17 (Reuters) - Canada's main stock index closed at its highest level in more than two years on Thursday, led by gold miners, as investors assumed the ill effects of the 16-day U.S. government shutdown would force the Federal Reserve to maintain its monetary stimulus.

The U.S. Congress on Wednesday approved an 11th-hour deal to end the shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.

The temporary deal funds the government until Jan. 15 and raises the debt ceiling until Feb. 7.

With the price of bullion soaring 3 percent and Canada's many gold mining companies following suit, the Toronto Stock Exchange's S&P/TSX composite index added 79.15 points, or 0.61 percent, to close at 13,036.36, its highest finish since late July, 2011.

"It seems like investors are starting to realize that this will probably delay any possible tapering by the Fed and markets are responding positively to that today," said Youssef Zohny, portfolio manager at Stenner Investment Partners in Vancouver.   Continued...