CANADA STOCKS-TSX advances as gold snaps back, Potash rises

* TSX up 52.44 points, or 0.45 percent, at 11,781.08

* Potash rises 3 pct; BHP to take offer to shareholders

* Strong gold miners help push TSX higher
(Updates to close, adds details)

By Jennifer Kwan

TORONTO, Aug 18 (BestGrowthStock) – Toronto’s main stock index
ended higher on Wednesday as investors hoped for a higher bid
for takeover target Potash Corp (POT.TO: ), while gold miners
also rose.

Investors continued to fixate on developments in BHP
Billiton’s (BHP.AX: ) (BLT.L: ) $39 billion offer for Potash Corp
(POT.TO: ). BHP said it would take its $130-a-share bid directly
to shareholders, bypassing Potash Corp’s board, which a day
earlier called the bid “grossly inadequate”. [ID:nSGE67H031]

Potash Corp shares gained 3 percent to C$151.75, helping
the materials sector climb 1.9 percent. On Tuesday, Potash
soared 26 percent.

“They’re betting on either BHP raising their offer or
another competitor coming in and competing for Potash,” Aaron
Fennell, senior market strategist at Lind-Waldock Canada, said
of investor reaction to the news.

The Toronto Stock Exchange’s S&P/TSX composite index
(.GSPTSE: ) capped the day up 52.44 points, or 0.45 percent, at
11,781.08, with eight of its 10 main groups higher.

Gold stocks helped boost the resource-heavy index, with
Barrick Gold (ABX.TO: ) up 1.4 percent at C$46.50, while Goldcorp
(G.TO: ) rose 3.9 percent to C$43.92. Agnico-Eagle (AEM.TO: )
advanced 1.3 percent to C$64.89.

The price of gold rose to a 1-1/2 month high after being
lower early in the day, extending its rally to a fifth session
on strong physical demand and technical buying. [GOL/]

($1=$1.03 Canadian)
(Reporting by Jennifer Kwan; editing by Rob Wilson)

CANADA STOCKS-TSX advances as gold snaps back, Potash rises