October 6, 2009 / 8:57 PM / 9 years ago

CANADA STOCKS-TSX rides record-high gold to strong finish

 * TSX closes up 1.3 percent at 11,247.97
 * Gold miners lead way with gold price at record high
 * Energy shares rise on higher oil price
 * Australia rate hike boosts market sentiment  (Adds details and comments)
 By Ka Yan Ng
 TORONTO, Oct 6 (Reuters) - Toronto’s main stock index jumped on Tuesday as economic recovery hopes got an unexpected shot in the arm and record high gold prices boosted shares of Barrick Gold  (ABX.TO) and other gold miners.
 Market heavyweight Barrick was up 3.98 percent at C$41.25, making it the day’s top gainer. Shares of fellow miner Goldcorp (G.TO) were not far behind, up 4.8 percent at C$44.22.
 Yamana Gold (YRI.TO) gained 7.6 percent to C$12.05 after it said third-quarter production rose 9 percent from the previous quarter, while costs remained in line with  expectations. [ID:nN06432345].
 Gold prices hit a record high above $1,040 an ounce after a media report, later denied, that Gulf Arab states were in talks to abandon the U.S. dollar in oil trade. [GOL/].
 Also, energy shares got a boost after a U.S. government agency raised its forecast for world oil demand for the fourth quarter [O/L], lifting oil prices above $71 a barrel.
 Shares of Suncor Energy (SU.TO), the second-biggest contributor to the index’s gain, advanced 2.7 percent to C$36.45, while shares of Talisman Energy TLM.TO rose 5.5 percent to C$19.29.
 The S&P/TSX composite index .GSPTSE finished with a triple-digit gain for a second straight session, up 145.35 points, or 1.3 percent, at 11,247.97, recovering another portion of last week’s 4.3 percent slide.
  Eight of the index’s 10 sectors were higher, led by a 4.14 percent surge in the materials group, which is home to gold miners.
 “It looks like last week’s caution has been replaced by something that is beginning to resemble euphoria at this stage,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
 Gains were strong from the get-go with sentiment getting a boost from the Reserve Bank of Australia’s decision to raise interest rates, making it the first G20 central bank to hike rates. The unexpected move gave credence to the view that the recession is easing. [ID:nSYD520296]
 ($1=$1.06 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                      

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