November 25, 2011 / 4:29 PM / 7 years ago

CANADA STOCKS-TSX rises as oils, gold miners buck Europe fears

 * TSX up 37.57 pts, or 0.3 pct, at 11,522.89
 * Materials, energy lead index’s gains
 * Italian, German bond sales drag  (Adds details) 
 By Jon Cook
 TORONTO, Nov 25 (Reuters) - Toronto’s main stock index was higher on Friday morning as energy and gold-mining issues rose, overshadowing fears that the euro zone’s debt crisis was deepening after another round of poor Italian and German bond sales.
 The index’s heavily weighted materials sector led the gains, rising nearly 1 percent on the back of a minor rally by gold miners as investors looked past a drop in bullion prices. Barrick Gold (ABX.TO) was the biggest mover, jumping 2.3 percent to C$50.69.
 Oil and gas issues, up 0.6 percent, also contributed to the halt of the index’s two-day slide. Suncor Energy (SU.TO) led the sector, up 0.7 percent to C$28.96.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 37.57 points, or 0.3 percent, at 11,522.89, after opening lower at 11,483.85.
 Italy paid a record 6.5 percent to borrow money over six months and its longer-term funding costs soared far above levels seen as sustainable for public finances. German Bund prices also dropped, reinforcing fears that debt contagion is starting to hurt the euro zone’s soundest economy. [MKTS/GLOB]
 Earlier in the week, a poor German bond sale sent markets into a tailspin.
 “We’re getting to the point where a lot of that has been discounted,” said Rick Hutcheon, president and chief operating officer at RKH Investments. “The Italian bond sale today appears to have been a bit of a flop yet the market is not paying that much attention to it.”
 Canadian financial stocks, which have minimal exposure to euro zone debt holdings, were little changed. Insurer Manulife Financial (MFC.TO) was among the better performers, rising 1.4 percent to C$10.92
 Activity was light as many U.S. traders took the day off after Thursday’s Thanksgiving holiday. “We’ll see a very lackluster, trendless, low volume kind of day here,” Hutcheon said.
 ($1=$1.05 Canadian)  (Reporting by Jon Cook; editing by Peter Galloway)                 

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