TORONTO, Jan 8 (Reuters) - Toronto stocks were strongly higher on Tuesday morning as record high gold prices and firm oil prices underpinned the resource-heavy market.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 144.63 points, or 1.1 percent, at 13,763.50. This followed a loss of 159 points on Monday.
Eight of the TSX index’s 10 main groups were higher, led by a 1.1 percent boost in the energy group and a 2.3 percent boost in the resource-heavy materials group. The gold-mining subindex, home to some of the world’s top gold miners, was up 4 percent.
Gold prices raced to a record high of $876.40 an ounce earlier in the day, surpassing last week’s peak of $869.05, helped up by a lower U.S. dollar and rising oil prices.
“The commodities are in vogue and we’re seeing a little bit of a bounce from the rest of the market,” said Paul Hand, managing director at RBC Capital Markets.
Among gold companies rising were Barrick Gold (ABX.TO), the world’s biggest producer, which gained C$2.10, or 4.4 percent, to a 52-week high of C$49.58, and Goldcorp Inc (G.TO), which added C$1.05, or 2.9 percent, to C$38.41.
Goldcorp said on Tuesday it expects production to rise 13.5 percent this year to 2.6 million ounces. But Canada’s No. 2 producer also forecast its total cash costs at about $250 per ounce for 2008, up from a forecast of $150 per ounce for 2007.
The market also benefited from a 2 percent rise in oil prices to $97.03 a barrel due to worries over renewed violence in Nigeria and tightening crude supplies.
The consumer discretionary and industrial groups bucked the trend, both retreating 0.4 percent.
Most transportation stocks were lower, including Canadian Pacific Railway (CP.TO), which slipped 51 Canadian cents to C$62.63. ($1=$1.00 Canadian) (Reporting by Scott Anderson; Editing by Peter Galloway)