CANADA STOCKS-TSX rallies on gold, looks past data

* TSX gains 0.46 percent to 11,950.31

* Golds climb as bullion prices hit two-month high

* Scotiabank lags peers after disappointing results

* Canadian economy slows sharply in second quarter
(Adds details)

By Ka Yan Ng

TORONTO, Aug 31 (BestGrowthStock) – Toronto’s main stock index
looked past some disappointing banking results and economic
growth data and rose on Tuesday morning, lifted by strength in
gold-mining issues as the price of gold hit a two-month high.

The price of gold, at $1,244.80 an ounce, shot to its
highest level since late June after a regional survey for New
York City showed business activity fell in August to its lowest
level in a year. Data that showed U.S. consumer confidence was
higher-than-expected in August didn’t do much damage to gold’s
strength.

Goldcorp (G.TO: ) jumped 2.7 percent to C$47.65, while
Barrick Gold (ABX.TO: ) added 1.6 percent to C$50. Fellow gold
miner Kinross (K.TO: ) climbed 3 percent to C$17.73. The index
materials group, which includes golds, was up 1.6 percent,
while the global gold subgroup was up more than 2 percent.

At 10:40 a.m. (1440 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 54.76 points, or 0.46
percent, at 11,950.31, after opening lower. Seven of the
index’s 10 main groups were higher.

Canada’s economic growth rate slowed more sharply than
expected in the second quarter on lower consumer spending and a
weaker trade performance, but the figures hurt the Canadian
dollar rather than equity markets. [ID:nN31233897]

“It’s a mixed data day, but Canada seems to be defying
gravity with the gold sector,” said Francis Campeau, broker at
MF Global Canada, in Montreal.

“(Bank of Nova Scotia) was disappointing, GDP was
disappointing, but the market is ignoring this info.”

Bank of Nova Scotia (BNS.TO: ), Canada’s third-largest bank,
said quarterly profit rose 13.9 percent, slightly below
expectations. The stock slipped 0.2 percent to C$51.82, lagging
its peers, which rose. Toronto-Dominion Bank (TD.TO: ), for
example, was up 0.89 percent at C$72.25.

Overall, the index’s financial group was up 0.3 percent.

($1=$1.07 Canadian)
(Reporting by Ka Yan Ng; editing by Peter Galloway)

CANADA STOCKS-TSX rallies on gold, looks past data