November 9, 2010 / 3:48 PM / 8 years ago

CANADA STOCKS-Record gold feeds TSX rally, but financials weigh

* Market rises to two-year high

* TSX up 0.27 percent at 13,088.33

* Golds, energy main gainers, offset bank weakness (Adds details)

TORONTO, Nov 9 (Reuters) - Toronto’s main stock index climbed to a two-year high on Tuesday morning as commodity prices extended their recent rally, led by gold’s record-setting pace.

Gold soared to a record high for a fourth day running, hitting $1,422.30 an ounce and fueling gains by gold miners. Other key commodities, including copper and oil, were also at multimonth highs. [O/R] [MET/L] [GOL/]

Barrick Gold (ABX.TO) gained 2.6 percent to C$52.84, while Goldcorp (G.TO) rose 1.8 percent to C$48.74, helping the gold subgroup rise 1.9 percent.

The materials group led all of the TSX’s main sectors, climbing 1.5 percent. Other miners were also strong performers, with Cameco (CCO.TO) jumping 5.59 percent to C$37.99 on the back of a target price upgrade. [ID:nWNAB1263] [RCH/CA]

The gains, combined with a 0.6 percent advance by the energy group, lifted Toronto’s main stock index to its highest level since September 2008.

At 10:12 a.m., the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 35.85 points, or 0.27 percent, at 13,088.33. Five of its 10 main groups were higher.

Financials were a notable decliner, slipping 0.4 percent, as concerns lingered about the state of some euro zone debt.

“We’re in record territory everywhere,” said Francis Campeau, broker at MF Global Canada, in Montreal.

“What’s weighing the TSX down is weakness from the financial sector. There’s a lot of jitters on Europe’s banking system. That’s been weighing on the banks in the last few sessions,” Campeau said.

CIBC World Markets also raised target prices on most of Canada’s biggest banks, but cut Bank of Montreal (BMO.TO). [ID:nWNAB1252]

Toronto-Dominion Bank (TD.TO) fell 0.94 percent to C$73.90, while Royal Bank of Canada (RY.TO) lost 0.4 percent to C$55.03, and Bank of Montreal was off 0.5 percent at C$60.41.

$1=$1.00 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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