TSX hits highest level since Oct 2008 on oil, gold

Mon Nov 23, 10:29 AM
TORONTO (Reuters) - Toronto's main stock index rose to its highest level in nearly 14 months on Monday as firm oil prices powered Suncor Energy and its peers, while lofty gold prices also helped generate interest in miners.
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(Reuters)

By Frank Pingue

TORONTO (Reuters) - Toronto's main stock index rose to its highest level in nearly 14 months on Monday as firm oil prices powered Suncor Energy and its peers, while lofty gold prices also helped generate interest in miners.

Shares of Suncor Energy, the biggest contributor to the index's gain, rose 2.4 percent to C$39.00, while Canadian Natural Resources was up 2.6 percent at C$72.45.

The rally in energy stocks came as oil prices rose more than 2.6 percent above $79.50 a barrel given signs of buoyant demand from China..

Barrick Gold Corp shares rallied 2.7 percent to C$48.29, followed by Goldcorp, which was up 2.7 percent at C$47.96.

The rally in gold-mining shares came as the price of gold hit a record high above $1,167 an ounce.

"It's definitely commodity prices. Simply put, continued discussion ongoing, as it has been for months now, about U.S. dollar weakness," said Gareth Watson, Canadian Equity Advisor, Portfolio Advisory Group, ScotiaMcLeod.

"People aren't wanting to get off that bandwagon so as long as that continues to be weak you are going to see strength in commodity prices which is naturally going to lift the TSX."

At 10:05 a.m. (1505 GMT), the S&P/TSX composite index was up 152.00 points, or 1.31 percent, at 11,731.33. Earlier it rose to 11,733.56, its highest level since October 1, 2008.

(Editing by Jeffrey Hodgson)