August 13, 2009 / 2:59 PM / 10 years ago

CANADA STOCKS-TSX surges on oil, gold and economic optimism

* TSX up 1.3 percent at 10,798.92

* Golds shine, lift top-gaining materials sector

* Surprise growth in France, Germany lifts sentiment

TORONTO, Aug 13 (Reuters) - Toronto’s main stock index charged higher on Thursday morning, buoyed by firm oil and gold prices and a rosier outlook for the world’s economic health.

The index’s hefty materials and energy sectors led the way, rising on higher prices for key commodities. Gold was above $960 an ounce for the first time since Aug. 7, while oil hovered above $70 a barrel.

Gold miners, part of the materials group, were influential advancers, with Barrick Gold (ABX.TO) up 2.4 percent at C$37.33, while Goldcorp (G.TO) rose 1.98 percent to C$39.23.

Kinross Gold (K.TO), which reported a lower quarterly profit but higher production [ID:nN12319795] on Wednesday, was up 1.14 percent at C$21.34.

“Gold is higher today and we’re seeing that bolster the top-gaining sector,” said Steve Ibel, institutional equities trader at Beacon Securities, in Halifax, Nova Scotia.

Overall the materials group was up 2.54 percent, while energy gained 1.65 percent.

At 10:40 a.m. (1440 GMT), the S&P/TSX composite index .GSPTSE was up 139.05 points, or 1.3 percent, to 10,798.92. All but one of the index’s main groups were higher.

Financials were also solidly higher, though off session highs, up 0.86 percent. Royal Bank of Canada (RY.TO) topped the list of heavyweight gainers with a 2.2 percent rise to C$50.69. On the flipside, big insurers Manulife (MFC.TO) and Sun Life (SLF.TO) eased .

The TSX carried forward positive sentiment that arose on overseas equity markets after data from Germany and France, the euro zone’s two biggest economies, showed their recessions ended in the second quarter, earlier than many policymakers and economists had forecast. [ID:nBRQ007480]

Investors looked past disappointing U.S. retail sales and weekly jobless claims data. [ID:nN13227479]

$1=$1.08 Canadian Reporting by Ka Yan Ng; 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