September 30, 2009 / 5:44 PM / 9 years ago

CANADA STOCKS-TSX rebounds to break-even as resources rally

 * TSX up 2.88 points after earlier 144-point drop
 * Energy and gold-miners headline turnaround  (Adds details and comments)
 By Frank Pingue
 TORONTO, Sept 30 (Reuters) - Toronto’s main stock index was hovering near the break-even level on Wednesday afternoon as a turnaround in commodity prices helped the resource-heavy index erase a triple-digit fall earlier in the session.
 Canadian Oil Sands Trust COS_u.TO was one of the biggest contributors to the rebound in the TSX, up 2.3 percent at C$30.70.
 Also helping to drive the turnaround were mining giant Teck Resources, which was up 1.69 percent at C$30.10, and gold miner Agnico-Eagle Mines (AEM.TO), up 1.8 percent at C$72.87.
 At 1:30 p.m. (1730 GMT), the S&P/TSX composite index .GSPTSE was up 2.88 points, or 0.03 percent, at 11,397.87. Earlier in the session the TSX had risen as much as 63 points and fallen as much as 144 points.
 “The No. 1 reason is the U.S. dollar is getting weaker and so gold prices go up and oil prices go up and that helps our market because we are very levered to commodities,” said Sal Masionis, stockbroker at Brant Securities.
 The index’s weighty energy sector was up 0.11 percent, while its materials sector, home to gold miners, was up 0.43 percent. Five of the TSX’s 10 sectors were higher.
 The price of oil rose above $68 per barrel due to a drop in in U.S. gasoline inventories and a weak greenback. [O/R]
 Meanwhile, the price of gold rallied to test the $1,000 an ounce level as the weaker U.S. dollar made gold and other commodities priced in the U.S. currency cheaper for non-U.S. investors. [GOL/]
 ($1=$1.07 Canadian)  (Editing by Peter Galloway)                                        

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