August 18, 2008 / 8:45 PM / 11 years ago

UPDATE 3-Toronto stocks edge higher as resource issues rise

(Updates closing numbers, adds details)

*TSX index ends choppy session little changed

*Financials dragged by worries of credit crunch fallout

*Gold producers rise with bullion price

TORONTO, Aug 18 (Reuters) - The Toronto Stock Exchange’s main index finished slightly higher on Monday as a rise in resource shares offset nagging fears of more fallout from the credit crunch.

In choppy action, the materials sector was lifted 2 percent by gold producers, which rose along with bullion prices and helped to put a floor under the benchmark index.

Gold climbed to end just under $800 an ounce while the U.S. dollar weakened. Traders said Monday’s action could be the beginning of a bounce back from recent declines for gold prices. Goldcorp (G.TO) was up 3.8 percent at C$32.35, while Barrick Gold (ABX.TO) added 3.3 percent to C$35.06.

The S&P/TSX composite index .GSPTSE closed up 22.67 points, or 0.17 percent, at 13,119.37 after climbing by more than 1 percent earlier in the day. Of its 10 main sectors, half were higher.

The financial-services sector fell 1 percent, tripped up by sliding bank shares in the United States amid anxiety over the possibility of more losses stemming from the U.S. mortgage crisis.

Canadian Imperial Bank of Commerce (CM.TO) slid 1.6 percent to C$60.25, and National Bank of Canada (NA.TO) lost 2.2 percent to C$48.87.

Worries were stoked by a Barron’s report that suggested the U.S. Treasury may recapitalize mortgage finance giants Fannie Mae FNM.N and Freddie Mac FRE.N. The Treasury Department said it had no plans to backstop either of the companies. For details, see: [ID:nWAT009920].

Shares of Corel Corp bounced higher after falling earlier in the day after the software developer said its majority shareholder had withdrawn its offer to buy out the rest of the company. Corel rose 4.5 percent to C$10.04. See: [ID:nN18443407]. ($1=$1.06 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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