August 21, 2012 / 8:48 PM / 6 years ago

CANADA STOCKS-TSX ends higher on gold miners, renewed Europe hopes

* TSX closes up 40.89 points, or 0.34 percent, at 12,116.92
    * Gold miners lead rise, banks and energy companies also
    * Optimism on Europe aids sentiment

    By Alastair Sharp
    TORONTO, Aug 21 (Reuters) - Canada's benchmark stock index
held on to gains to close slightly higher on Tuesday as
resurgent gold prices boosted mining stocks and investor
optimism grew on prospects for European bond-buying.
    The Canadian market followed European markets higher, but
was more subdued given the heavy weighting of commodity-related
stocks that get most of their momentum from signs of growth in
the world's emerging economies, such as China.
    "It's grinding its way slowly upward here," said Douglas
Davis, chief executive officer at wealth management firm
Davis-Rea. "Nothing spectacular, but I think it will continue to
do that for the next couple of months unless something really
blows up."
    The price of gold jumped to its highest level since May, and
gold miners were among the top-weighted upward movers on the
Toronto exchange, led by Goldcorp Inc's 2.5 percent rise
to C$38.88 and Eldorado Gold Corp jumping 5.7 percent
to C$12.43. 
    In fact, four of the top five performers by market weight
were gold miners, who Davis said have been able to break out of
a technical trading zone on the back of the rising price of
    The Toronto Stock Exchange's S&P/TSX composite index
 unofficially closed up 40.89 points, or 0.34 percent,
at 12,116.92. During the session, it had risen as much as 1
    The broad gains in Canadian stocks followed European
listings higher as investors bet on political and monetary moves
to backstop the region's most debt-ridden countries.
    Italy's main index closed 2.4 percent higher, while Spain
and France both added 1.1 percent.
    Philip Petursson, director of the portfolio advisory group
at Manulife Asset Management, said a string of decent corporate
earnings this month and attractive valuations had given the
exchange a positive tilt which could only be aided by European
    "The glass is half full and if things in Europe seem to be
leaning a little bit more positively, that's just further
upside," he said.
    European shares earlier hit a 13-month high and the euro
climbed amid hopes that meetings on Greece's future this week
and new crisis plans being drawn up by the European Central Bank
will soothe the euro zone's ongoing debt crisis.
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