October 7, 2009 / 9:29 PM / in 8 years

CANADA STOCKS-Gold stocks shine in TSX's third day of gains

 * TSX rises 0.91 percent to close at 11,349.88
 * Gold miners rally for second day with prices at new high
 * Energy shares fall with price of oil
 (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 7 (Reuters) - Toronto's main stock index put
together a late rally to book a third-straight day of
triple-digit gains on Wednesday as gold prices rose to a record
high and lifted shares of gold producers such as Barrick Gold
ABX.TO and Goldcorp G.TO.
 Gold mining shares built on strong gains from the previous
session and Barrick shares were among the key drivers of the
index's gain. Barrick was up 1.3 percent at C$41.77, while
Goldcorp rose 1.1 percent to C$44.71.
 The rally was supported by another record-setting day for
the price of gold, which neared $1,050 per ounce, as mounting
worries about inflation pulled more investors toward the
precious metal. [GOL/]
 The index was up only modestly for most of the day, held up
by gold miners and other stocks in the materials group, until
the last hour, when almost all the index's components turned
 The S&P/TSX composite index .GSPTSE closed up 101.91
points, or 0.91 percent, at 11,349.88.
 Francis Campeau, broker at MF Global Canada in Montreal,
said it was quiet ahead of Alcoa results, which kick off U.S.
earnings season, as market players held positions after two
strong sessions.
 After market close, aluminum producer Alcoa posted a
surprise profit after three quarterly losses, mainly because of
cost savings and an increase in aluminum prices
 Notable risers included Royal Bank of Canada RY.TO and
Toronto-Dominion Bank TD.TO, which ended as the top two
heavyweight gainers after being the top two losers on Tuesday.
Royal was up 1.2 percent at C$56.31, while TD gained 1.53
percent to C$65.80.
 Just as the session wound down to its final minutes,
Canadian Finance Minister Jim Flaherty announced he has written
to Canada's big banks asking them to stop selling insurance on
their websites, the latest volley in a long-running battle
between big insurance and banks.
 It was not yet clear whether Flaherty wants the banks to
stop insurance sales on any website, or merely on their main
bank websites. [ID:nN07468589]
 Most energy shares were under pressure, including EnCana
ECA.TO, as the price of oil slipped more than 1 percent to
below $70 a barrel. Encana topped all heavyweight decliners,
falling 0.7 percent to C$60.97.
 Suncor Energy SU.TO bucked the trend, gaining 2.6
percent. Its chief executive, Rick George, said on Wednesday
that annual savings from Suncor's acquisition of Petro-Canada
will exceed the company's target. He also said the acquisition
could also help the company restart projects deferred last year
at a quicker pace than would otherwise be possible.
 Among notable active issues, Labopharm Inc DDS.TO soared
around 40 percent after the small Canadian drugmaker said all
U.S. FDA concerns about the manufacturing process for its
once-daily depression treatment, Trazodone, had been resolved,
clearing the way for U.S. approval early next year. Labopharm
finished at C$2.02, up 39.31 percent.
 (Editing by Peter Galloway)

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