September 7, 2012 / 3:32 PM / 6 years ago

CANADA STOCKS-Gold miners push TSX to 4-month high

* TSX jumps 95.65 points, or 0.79 percent, to 12,235.38
    * Index hits highest level since May 2 as gold miners rise
    * Bullion, crude prices gain, benefit Canada's commodity

    By Alastair Sharp
    TORONTO, Sept 7 (Reuters) - Gold miners helped push the main
Canadian index to its highest level since early May on Friday as
bullion rose and investors cheered signs the Federal Reserve
would follow the European Central Bank in embarking on monetary
easing to help kickstart growth.
    Bullion raced to a six-month high as U.S. jobs growth
slowed, setting the stage for the Federal Reserve to pump
additional money into the economy of Canada's main trading
partner as early as next week. 
    "The jobs numbers out of the U.S. today further provides
reason for QE3, which would be positive for gold," said Philip
Petursson, director of the portfolio advisory group at Manulife
Asset Management, referring to a third round of bond-buying
known as quantitative easing. 
    Other commodity-related stocks, comprising roughly half of
the index, also gained after China approved a multi-billion
dollar infrastructure spending plan.
    By 10:20 a.m. (1420 GMT) the Toronto Stock Exchange's
S&P/TSX composite index had gained 95.65 points, or
0.79 percent, to 12,235.38, its highest level since May 2.
     The move added to a sharp jump on Thursday after the ECB
unveiled its plan to backstop the borrowing costs of struggling
euro zone countries, a move Petursson said also encouraged
investors to turn to hard assets.
    The world's largest miner, Barrick Gold carried the
index higher, rising 2.4 percent to C$39.20, while other major
miners rose even more. Goldcorp added 2.8 percent to
C$42.51, Kinross Gold jumped 5.3 percent to C$9.43 and
diversified miner Teck Resources gained 5.5 percent to
    Crude, copper and other commodities moved higher, and the
combination of news out of Europe, the United States and China
suggested further rises were possible.
    "Other commodities, oil specifically, could benefit...copper
could see gains as well, especially with the announcement out of
China, the additional stimulus to help their economy," Petursson
    China approved $157 billion in projects to build highways,
ports and airport runways as it looks to energize an economy
mired in its worst slowdown in three years, fuelling hopes the
world's growth engine may get a lift from the fourth quarter.
    In company news, shares in yogawear retailer Lululemon
Athletica Inc jumped 6.1 percent to C$71.50 after the
company reported a higher quarterly profit and boosted its
outlook, but margins fell and sales growth in established stores
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