January 8, 2008 / 3:27 PM / 11 years ago

UPDATE 1-Toronto stocks rise strongly on gold, oils

(Adds details)

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.

Suncor Energy (SU.TO) added C$1.39 to C$109.74, and EnCana Corp (ECA.TO) rose 64 Canadian cents to C$69.68.

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)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below