Golds, oil shield TSX from Egypt-related selloff

Fri Jan 28, 2011 5:43pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Ka Yan Ng

TORONTO (Reuters) - Rising energy and materials shares, spurred by surging oil and gold prices, kept Toronto's main stock index in positive territory on Friday, fending off a selloff in other areas in the wake of unrest in Egypt.

The gain stood in contrast to stocks in the United States and emerging markets, which investors sold in reaction to street battles between protesters and Egyptian security forces.

Toronto's heavily-weighted resource sector insulated the index from deep losses. While six of the 10 index sectors were lower, the energy sector benefited from a soaring oil price and materials were boosted by safe-haven gold miners.

The Toronto Stock Exchange's S&P/TSX composite index finished 27.38 points, or 0.2 percent, higher at 13,437.58.

"It really underscores Canada's position as a producer of commodities that would benefit in the event of geopolitical instability," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"If instability continues ... we should be supported by the weighting in energy and gold."

Gold-mining stocks reclaimed ground after a sharp decline in the previous session and steadily added to gains as the price for bullion bounced $40 per ounce off session lows.

The index's materials group, home to the gold-mining sector, was up 1.1 percent.   Continued...

<p>A general view of the TSX (Toronto Stock Exchange) Broadcast Centre in Toronto June 20, 2008. REUTERS/Mark Blinch</p>