September 22, 2010 / 2:30 PM / 8 years ago

CANADA STOCKS-Strong gold price pushes TSX higher

 *TSX up 22.64 points, or 0.19 percent, at 12,193.21
 *Seven of index’s 10 main groups rise  (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Sept 22 (Reuters) - Toronto’s main stock index climbed on Wednesday morning, boosted by rising prices for gold and other commodities as the greenback slid after the U.S. Federal Reserve raised expectations of more monetary-policy easing.
 The index’s materials group, home to miners and fertilizer companies, was up 1 percent as gold and base-metals prices rose as the U.S. dollar fell after the Fed expressed greater concern on Tuesday about sluggish U.S. economic growth and low levels of inflation. [ID:nTRU002490] [ID:nN20109053] [FRX/]
 Key names on the upside included First Quantum Minerals (FM.TO), up 0.8 percent at C$69.93, and Agnico-Eagle (AEM.TO), which rose 1.6 percent to C$71.37.
 Gold prices hit record highs above $1,295 an ounce in their third day of gains. [GOL/]
 “I think it’s how the market perceived the Fed being prepared to do more quantitative easing, or how they’re not about to raise interest rates any time soon,” said Francis Campeau, a broker at MF Global Canada in Montreal.
 “It creates dilution of the U.S. dollar. The more you print the paper the less it’s worth,” Campeau said.
 Around 10:00 a.m. (1400 GMT), the S&P/TSX composite index .GSPTSE was up 22.64 points, or 0.19 percent, at 12,193.21, near its 2010 high of 12,321.76, reached in late April.
 Seven of the TSX index’s main sectors were higher. Other areas of support included energy shares, up 0.1 percent, as oil rose above $75 a barrel on the weaker greenback. [O/R] Suncor Energy (SU.TO) climbed 0.3 percent to C$32.92.
 Potash Corp POT.TO, which traded flat near C$150.53, was in the spotlight again after it said on Wednesday it filed a lawsuit against BHP Billiton (BHP.AX) BLT.L that seeks to block the mining giant’s $39 billion hostile bid for the Canadian fertilizer producer. [ID:nN22227579]
 ($1=$1.03 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)                                        

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