CANADA STOCKS-TSX rises as gold price makes miners shine

Wed Jun 22, 2011 11:46am EDT

   * TSX up 54.11 points, or 0.41 percent, 13,117.43
 * Seven of the 10 main groups higher
 (Adds details, comments)
 By Solarina Ho
 TORONTO, June 22 (Reuters) - Toronto's main stock index
marched higher on Wednesday morning after making healthy gains
on Tuesday, powered by a jump in the price of gold to a
two-month high, which pushed up gold-mining shares.
 The index's hefty materials group led gains, climbing 1.51
percent, while its gold-mining subgroup rose 2.28 percent on
the back of the stronger bullion prices. [GOL/]
 Goldcorp (G.TO) rose 3.29 percent to C$48.72, while Barrick
Gold (ABX.TO) was up 2.86 percent at C$44.17. Eldorado Gold
(ELD.TO) powered up 4.09 percent to C$14.25.
 Gold prices rose on continuing European sovereign debt
fears and expectations of loose monetary policies from central
banks around the world, especially the U.S. Federal Reserve,
which was expected to deliver a pessimistic assessment of the
economy later on Wednesday.
 Gavin Graham, president of Graham Investment Strategy, said
the gold miners were also likely reacting positively to
Iamgold's (IMG.TO) dividend increase late on Tuesday.
[ID:nASA02CL6]
 "That's just the latest in a string of profitable gold
companies producing mines, actually paying some of that out to
their shareholders...which is a very welcome development,"
Graham said.
 At 10:52 a.m. (1452 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 54.11 points, or 0.41
percent, at 13,117.43. Seven of the index's main groups were
higher.
 The gains added to Tuesday's 1.6 percent jump, its biggest
one-day gain in three months.
 The government of Greek Prime Minister George Papandreou
survived a confidence vote on Tuesday, the first of three tests
it must survive to avert the euro zone's first sovereign debt
default.
 "I think it's relief about the Greek prime minister winning
a vote of confidence last night, meaning there's a possibility
the austerity measures in Greece will go through," said Graham,
but warned that some form of debt restructuring will still have
to take place.
 Also helping lead the index higher was a 1.7 percent rise
to C$39.82 by Canadian Natural Resources (CNQ.TO). The index's
energy group was up 0.79 percent, bolstered by firmer oil
prices. [O/R]
 U.S. crude was up more than $1 in choppy trading after a
U.S. government report showed crude oil stockpiles fell more
than expected.
 ($1=$0.97 Canadian)
 (Reporting by Solarina Ho; editing by Peter Galloway)







































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