TSX edges higher as gold-miners surge

Mon Aug 22, 2011 5:43pm EDT
 
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By Trish Nixon

TORONTO (Reuters) - Toronto's main stock market index closed moderately higher on Monday as investors searched for value in beaten-down stocks and gold-mining issues surged with the price of bullion, offsetting weakness in banks.

Safe-haven gold hit a third consecutive all-time high near $1,900 after staging its biggest weekly gain in 2-1/2 years last week, driving the index's gold-mining sub-group up 4.2 percent.

"It's a nervous nervous market that we have here, and people are doing the flight to safety thing," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

"For a change, the gold stocks participated. That has really helped our market."

Six of the top 10 influential gainers were major gold mining stocks, with Goldcorp (G.TO: Quote) leading the way, up 4.8 percent at C$53.65. Barrick Gold (ABX.TO: Quote) added 2.6 percent to C$51.64, and Kinross Gold (K.TO: Quote) jumped 5.1 percent to C$17.49.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed off its earlier highs, but still up 60.89 points, or 0.51 percent, at 12,068.36. Earlier in the session it climbed as high as 12,218.03.

Seven out of 10 sectors were stronger, with the weighty materials sector driving the gains, up 2.8 percent, and the beaten-down telecommunications group rebounding 1.1 percent.

The gains came after the TSX lost more than 4 percent last week on concerns about a double-dip recession in the United States and the debt crisis in Europe.   Continued...

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