CANADA STOCKS-Golds lead broad-based rally on TSX

Tue Sep 20, 2011 11:29am EDT

   * TSX rises 155.53 points, or 1.28 pct to 12,327.57
 * All 10 main groups higher; golds drive gains
 (Adds details, analyst comments)
 By Trish Nixon
 TORONTO, Sept 20 (Reuters) - Toronto's main stock index
rebounded on Tuesday, after touching a one-week low in the
previous session, as bargain-hunters returned to the market and
gold miners rose along with bullion prices.
 The materials sector led the broad rally, up 2.3 percent,
lifted by strength in gold issues. The price of bullion rose by
more than 1 percent on safe-haven buying after a warning from
the International Monetary Fund on slowing global growth put
crude oil and base metals under pressure. [GOL/]
 Goldcorp (G.TO) was the most influential advancer, up 4.2
percent at C$52.16, followed by Barrick Gold (ABX.TO), which
rose 2.9 percent to C$54.36.
 "The TSX is oversold," said David Baskin, portfolio manager
and president of Baskin Financial Services.
 "There's some real bargains out there, and I think if we
see any positive signs from the Fed or from Europe you'll see a
relief rally."
 Investors were also hoping the Federal Reserve would offer
fresh stimulus to a sputtering U.S. economy at a two-day policy
meeting that started on Tuesday, with a move to stock up on
longer-term Treasury notes. [ID:nS1E78I231]
 Analysts expect Fed Chairman Ben Bernanke to muster a
consensus behind a plan to rebalance the Fed's bond portfolio
to push down longer-term interest rates. [ID:nFEDAHEAD]
  At 10:53 a.m. (1453 GMT) The Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 155.53 points, or 1.28
percent at 12,327.57. All 10 of its main groups were higher, as
investors stepped back into the market after two days of
losses.
 The big banks and insurers added 1.1 percent, with Royal
Bank of Canada (RY.TO) rising 1.2 percent to C$47.16, and
Toronto-Dominion Bank (TD.TO) up 1 percent at C$74.29.
 The market appeared to shrug off Standard & Poor's
downgrade of Italy's credit rating by one notch, an unexpected
move that increased strains on the already stressed euro zone,
as well as data showing U.S. housing starts fell more than
expected in August [ID:nL3E7KK0MS] [ID:nS1E78I1JN].
 ($1=$0.99 Canadian)
 (Reporting by Trish Nixon; editing by Rob Wilson)
















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