TSX jumps on record gold, upbeat U.S. data

Wed Nov 25, 2009 5:17pm EST
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By Ka Yan Ng

TORONTO (Reuters) - Toronto's main stock index closed higher on Wednesday as a record high gold price and a turnaround in oil prices boosted resource issues.

Gold prices surged above $1,180 an ounce on U.S. dollar weakness, while the price of oil settled near $78 a barrel on lower-than-expected builds in U.S. oil inventories.

World No. 1 gold producer Barrick Gold gained 1.47 percent to C$46.24, while Teck Resources jumped 3.28 percent to C$37.48. Suncor Energy gained 0.62 percent to C$38.94.

EnCana shares topped the list of most active advancers, up 2.5 percent to C$57.36, after shareholders overwhelmingly approved a plan to split Canada's No. 2 independent petroleum producer into independent oil and natural gas businesses.

Overall, the energy and materials groups were the biggest gainers, rising 1.18 percent and 1.89 percent, respectively.

Market activity petered out at midafternoon as traders closed up positions ahead of the U.S. Thanksgiving holiday on Thursday, leaving the index with a stable gain after investors weighed a mixed bag of U.S. economic data.

The market sided with upbeat U.S. October consumer spending and weekly labor data, embracing them as further signs of the strength of the economic recovery, and looked past an unexpected fall in durable good orders.

"Good economic numbers in the U.S., good commodity numbers. Gold was strong again so that's kept the Toronto market a little higher," said Bruce Latimer, a trader at Dundee Securities.   Continued...

<p>A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch (CANADA)</p>