CANADA STOCKS-TSX moves higher as U.S. standoff boosts golds

Mon Oct 7, 2013 4:48pm EDT

* TSX rises 29.60 points, or 0.23 percent, to 12,788.25
    * Seven of 10 main index sectors advance
    * Gold producers climb 2.2 percent
    * BlackBerry jumps after report of strategic interest,
analyst upgrade

    By John Tilak
    TORONTO, Oct 7 (Reuters) - Canada's main stock index rose on
Monday after a partial U.S. government shutdown boosted
bullion's safe-haven appeal and caused a jump in gold-mining
stocks.
    The shutdown neared its second week and highlighted a
political standoff over U.S. debt and budget levels. With no
resolution on the horizon, U.S. lawmakers braced for an Oct. 17
deadline to increase the country's borrowing power or risk
default. 
    The Toronto market outperformed the S&P 500, gaining
for a second straight session.
    "Overall this is a market that is trying to move ahead,"
said Elvis Picardo, strategist and vice president of research at
Global Securities in Vancouver. "It points to the fact that
investors are willing to take some risk."
    Investors certainly do not expect the worst-case scenario of
a U.S. default to materialize, he added. "It's a bit of an
ostrich-in-the-sand type of attitude."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed up 29.60 points, or 0.23 percent, at 12,788.25.
    Seven of the 10 main sectors on the index were higher.
    A 2.2 percent jump in gold producers helped boost the
materials sector, which includes mining stocks. 
    "Gold stocks seem to be quite undervalued," Picardo said.
"Some of the money is flowing into that sector purely based on
the uptick in gold prices."
    The price of bullion rose more than 1 percent. 
    Barrick Gold Corp added 1.4 percent to C$18.80, and
Goldcorp Inc was up 1.2 percent at C$26.05.
    Industrials climbed 0.5 percent, with Canadian National
Railway Co gaining 1.2 percent to C$107.24, and
Canadian Pacific Railway Ltd advancing 2.2 percent to
C$131.84.    
    BlackBerry jumped 4.1 percent to C$8.20 on news of
potential interest from strategic buyers and an analyst upgrade
of the company's stock.
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