* TSX gains 1.08 percent to 12,077.31
* Gold producers up steeply as metal nears record (Updates prices, additional commentary)
By Ka Yan Ng
TORONTO, May 11 (Reuters) - Toronto’s main stock index pushed up more than 1 percent to a one-week high on Tuesday in a broad rally led by safe-haven gold shares, which rose as the price of the precious metal neared a record high.
Gold producers advanced strongly in a flight to safety as economic uncertainties over the euro zone’s $1 trillion rescue package prompted investors to buy the metal. The index’s materials group, home to gold miners, was up 2.5 percent. [GOL/]
Goldcorp (G.TO) was up 5.7 percent at C$47.11, while Barrick Gold (ABX.TO) gained 4.1 percent to C$46.80. Yamana Gold (YRI.TO) rose 6 percent to C$11.63, and Kinross Gold (K.TO) added 7 percent to C$19.10.
“(The Toronto market) lagged on the way up yesterday but we are outperforming today. The answer is simply gold,” said Francis Campeau, broker at MF Global Canada in Montreal.
The Toronto Stock Exchange’s S&P/TSX composite index gained 2.18 percent on Monday, compared with a 3.9 percent rise for the Dow Jones industrial average.
At 12:40 p.m. (1640 GMT) on Tuesday, the S&P/TSX composite index .GSPTSE was up 128.65 points, or 1.08 percent, at 12,077.31. The Dow and the S&P 500 index were both up around 0.3 percent.
Nine of the Toronto index’s 10 main groups were higher but advances outside of gold shares were more guarded as worries over the euro zone deal resurfaced.
“We’re still kind of cautious on the market given there’s a lot of uncertainty regarding what’s happening in Europe,” said Anil Tahiliani, a portfolio manager at McLean & Partners Wealth Management in Calgary.
Concerns about economic growth spurred by the instability in Europe pushed some non-gold issues in the materials group lower. Copper and gold miner First Quantum Minerals (FM.TO) fell 4.1 percent to C$70.43 even though its first-quarter profit soared on higher copper prices. [ID:nSGE6490VT]
Ivanhoe Mines (IVN.TO) fell 3.4 percent to C$15.98 even though the Canadian exploration company said it expects its Oyu Tolgoi project in Mongolia to be one of the world’s top three copper-gold mines. [ID:nN11260782]
Meanwhile, George Weston Ltd (WN.TO), North America’s largest baked goods maker and owner of top Canadian supermarket chain Loblaw (L.TO), reported a lower first-quarter profit compared with a year earlier, when it booked a big gain, and its shares were up 0.7 percent at C$74.19. [ID:nN11254709]
$1=$1.02 Canadian Reporting by Ka Yan Ng; editing by Peter Galloway