TSX pushes higher with surging gold price

Tue Oct 6, 2009 5:55pm EDT
 
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By Ka Yan Ng

TORONTO (Reuters) - Toronto's main stock index jumped on Tuesday as economic recovery hopes got an unexpected shot in the arm and record high gold prices boosted shares of Barrick Gold and other gold miners.

Market heavyweight Barrick was up 3.98 percent at C$41.25, making it the day's top gainer. Shares of fellow miner Goldcorp were not far behind, up 4.8 percent at C$44.22.

Yamana Gold gained 7.6 percent to C$12.05 after it said third-quarter production rose 9 percent from the previous quarter, while costs remained in line with expectations.

Gold prices hit a record high above $1,040 an ounce after a media report, later denied, that Gulf Arab states were in talks to abandon the U.S. dollar in oil trade.

Energy shares got a boost after a U.S. government agency raised its forecast for world oil demand for the fourth quarter, lifting oil prices above $71 a barrel.

Shares of Suncor Energy, the second-biggest contributor to the index's gain, advanced 2.7 percent to C$36.45, while Talisman Energy rose 5.5 percent to C$19.29.

The S&P/TSX composite index finished with a triple-digit gain for a second straight session, up 145.35 points, or 1.3 percent, at 11,247.97, recovering another portion of last week's 4.3 percent slide. The TSX was up more than 2 percent before relinquishing some gains.

Eight of the index's 10 main sectors were higher, led by a 4.14 percent surge in the materials group, which is home to gold miners.   Continued...

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