CANADA STOCKS-Golds push TSX higher as U.S. impasse persists

Mon Oct 7, 2013 10:57am EDT

* TSX rises 37.62 points, or 0.30 percent, to 12,796.29
    * Eight of 10 main index sectors advance
    * Gold producers jump 1.3 percent
    * Goldcorp, Barrick have biggest positive influence on
market

    By John Tilak
    TORONTO, Oct 7 (Reuters) - Canada's main stock index edged
higher on Monday as the uncertainty surrounding an extended U.S.
government shutdown spurred the bullion price and lifted
gold-mining stocks.
    The bullion jumped to a one-week as investors placed bets on
the commodity that is seen as a safe haven during volatile
times.
    The shutdown neared its second week and highlighted a
political standoff over U.S. debt and budget levels.
    It did not appear that there was a resolution on the
horizon, and U.S. lawmakers braced for an Oct. 17 deadline to
increase the country's borrowing power or risk default.
 
    While the Toronto market did better than the S&P 500,
its gains were capped by declines in the energy sector.
    "Our market isn't going anywhere in particular," said Fred
Ketchen, director of equity trading at ScotiaMcLeod. "And we
won't go anywhere as long as we've got this overhang in the
United States."
    "Eventually they'll come to some agreement," he added. "But
there's no way the market is going to take off until there is
some resolution to this problem."
    The Toronto Stock Exchange's S&P/TSX composite index
 was up 37.62 points, or 0.30 percent, at 12,796.29.
    Eight of the 10 main sectors on the index were higher. 
    Financials, the index's most heavily weighted sector,
climbed 0.2 percent. Royal Bank of Canada, the country's
biggest lender, rose 0.5 percent to C$66.60; Toronto Dominion
Bank was up 0.5 percent at C$91.74.
    A 1.3 percent jump in gold producers helped boost the
materials sector, which includes mining stocks. The price of
bullion rose more than 1 percent. 
    "As long as there is this nervous atmosphere overhanging the
market, gold is going to be the center of attraction," Ketchen
said.
    Barrick Gold Corp added 0.9 percent to C$18.71, and
Goldcorp Inc climbed almost 1 percent to C$25.96. The two
stocks had the biggest positive influence on the market.
    Energy shares slipped slightly, with the price of oil
weighing on the group. Encana Corp slipped 0.3 percent
to C$17.64.
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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