February 14, 2014 / 10:14 PM / 6 years ago

CANADA STOCKS-Gold miners, Enbridge push TSX up to near 3-year high

* TSX rises 53.11 points, or 0.38 percent, to 14,054.76
    * Seven of 10 main index sectors advance
    * Index up for the ninth straight session
    * Gold mining shares jump 2.1 percent, hit 5-month high
    * Enbridge, Brookfield Asset climb after quarterly report

    By John Tilak
    TORONTO, Feb 14 (Reuters) - Canada's main stock index
touched its highest level in nearly three years on Friday as
higher bullion prices drove up shares of gold producers and
Enbridge Inc gained after the pipeline company's
quarterly results showed revenue jumped.
    Investors also cheered data showing the euro zone economy
grew in the fourth quarter, beating market expectations, as
strength in Germany and France helped the region's recovery.
    Figures indicating a sharp drop in U.S. manufacturing output
in January, caused by cold weather, failed to dampen the
positive mood. 
    A rally in the gold-mining sector helped the benchmark
Canadian index climb for a ninth straight session and recorded
its strongest weekly gain in about 1-1/2 months.
    The gold group, which is up about 28 percent this year, hit
a five-month high on Friday.
    "The resource stocks will come off the mat this year," said
Bob Gorman, chief portfolio strategist at TD Wealth. "I think by
and large they will have found a floor."
    "It's certainly been a real story so far this year," he said
of the gold sector's performance, adding that shares of gold
miners were looking more attractive than the commodity for the
first time in several years.
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 53.11 points, or 0.38 percent, at 14,054.76,
just below the session high of 14,071.54 - its highest since
early 2011.
    After underperforming the S&P 500 index last year,
the TSX is up 3.2 percent in 2014 compared with a 0.5 percent
decline in its U.S. counterpart.
    Gorman, who is a member of TD Wealth's asset allocation
committee, sees a greater convergence of returns between the two
indexes this year and recommends that investors "overweight"
Canadian equities.
    Seven of the 10 main sectors on the index were higher.
    Gold producers shot up 2.1 percent, supported by a 1.4
percent gain in the bullion price. In the group, Goldcorp Inc
 added 2.3 percent to C$30.32, and Barrick Gold Corp
 rose 1.3 percent to C$22.36.
    Financials, the index's most heavily weighted sector,
climbed 0.5 percent. Bank of Nova Scotia was up 0.2
percent at C$63.29, and Toronto-Dominion Bank advanced
0.6 percent to C$49.28.
    Brookfield Asset Management Inc jumped 1.1 percent
to C$43.25, after the company reported its best year ever in
2013 and more than doubled its funds from operations in the
fourth quarter. 
    Enbridge reported a fourth-quarter loss, mainly due to
losses on hedging contracts, but revenue jumped. The stock rose
1 percent at C$47.82.
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