July 22, 2013 / 8:47 PM / 6 years ago

CANADA STOCKS-TSX hits 7-week high as golds soar with bullion price

* TSX rises 73.25 points, or 0.58 percent, to 12,758.38
    * Seven of the 10 main index sectors advance
    * Gold miners jump 5 percent as bullion climbs
    * Goldcorp has biggest positive impact on index
    * Maple Leaf Foods advances on plans to sell farms

    By John Tilak
    TORONTO, July 22 (Reuters) - Canada's main stock index
climbed on Monday to a seven-week high as a jump in the price of
bullion fueled a rally in gold miners and broader positive
sentiment lifted financials.
    The Toronto market outperformed the S&P 500 index and
posted its fourth session of gains in a row.
    Investors also cheered a strong election victory by Japanese
Prime Minister Shinzo Abe, who vowed to stay focused on reviving
the stagnant economy. 
    The bullion price jumped 3 percent and was on track to post
its biggest three-day rally in over a year, helped by weakness
in the U.S. dollar and by a lessening of concern that the U.S.
Federal Reserve will quickly dial back its stimulus program. 
    Down significantly on the year, the benchmark Canadian
index's gold-mining sector was up 6.5 percent on Monday.
    "Gold was knocked down too far and people realize there is
value there," said Fred Ketchen, director of equity trading at
    "This market is skittish," he added. "But there's probably
more confidence in the market than there is fear."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 73.25 points, or 0.58 percent, at 12,758.38,
after touching 12,761.44, its highest point since May 30.
    The index is up 2.6 percent on the year, still badly
trailing U.S. stocks.
    The appetite for Canadian stocks has been battered this year
by a commodities slump, but there have been signs of
strengthening and the index has posted four straight weeks of
    It may still be too early to say that sentiment for Canadian
equities has shifted, said David Cockfield, managing director
and portfolio manager at Northland Wealth Management. 
    "But let's say that the first robin has landed. It's the
first indication that things may be changing."
    Seven of the 10 main sectors on the index were higher on
Monday. The materials sector, which includes mining stocks,
jumped 3.8 percent, boosted by soaring shares of gold miners.
    Goldcorp Inc shot up 5.8 percent to C$29.97 and had
the biggest positive influence on the index. Barrick Gold Corp
 jumped 6.4 percent to C$18.25.
    Shares of energy companies climbed 0.2 percent. Enbridge Inc
 added 0.5 percent to C$46.79, and Suncor Energy Inc
 rose 0.3 percent to C$33.09.
    Financials, the index's most heavily weighted sector, gained
0.5 percent. Royal Bank of Canada, the country's biggest
lender, was up 0.9 percent at C$65.66.
    In company news, meat processor Maple Leaf Foods Inc
 said it plans to sell its Ontario turkey farms and
hatchery, sending its shares up 2.5 percent to C$15.83.
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