CANADA STOCKS-TSX rises on strong golds

* TSX up 0.42 percent at 11,401.89

* Financials turn higher, join golds in rise

* Energy shares cut losses
(Updates with stock activity)

By Ka Yan Ng

TORONTO, Jan 26 (BestGrowthStock) – Toronto’s main stock index
turned higher on Tuesday on strength in gold producers, while
energy shares cut losses and financials advanced.

The index’s turnaround from a lower open came after after
U.S. data showed consumer confidence rose for a third
consecutive month in January. [ID:nN26357538]. In early trade
the index had fallen to its lowest level since Dec. 9.

The index’s energy sector pared losses and the financials
sector moved into positive territory after both groups had
fallen hard on news that China implemented another clampdown on
lending. [ID:nSGE60P039]

Gold producers led the advance despite a weaker price for
the precious metal. Three gold miners were among the top 10
heavyweight advancers. Barrick Gold (ABX.TO: ) led the charge, up
1.7 percent at C$38.71.

Other constituents of the index’s materials group also
rose. Fertilizers stocks Potash Corp (POT.TO: ) and Agrium
(AGU.TO: ) were both up more than 2.5 percent.

All five of the nation’s biggest banks were higher, led by
Royal Bank of Canada, up 1.2 percent at C$53.36.

At 12:30 p.m. (1730 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 47.38 points, or 0.42
percent, at 11,401.89. Half of the index’s 10 main groups were
higher, including two of its heavyweight sectors.

“There’s a number of forces at work. One is concerns
earlier that China’s slowdown or tightening would have a
negative impact on commodities and gold. Actually that has
dissipated,” said John Ing, president of Maison Placements
Canada.

He said the State of the Union address by U.S. President
Barack Obama on Wednesday would be closely watched. Ing said
that even though the U.S. government will try to flatten
spending, its debt is still huge and would weigh on the U.S.
dollar, thereby giving gold a boost.

Energy issues continued to be key downside movers, led by
Cenovus Energy (CVE.N: ), off 1.7 percent at C$24.70, while
EnCana (ECA.TO: ) lost 0.4 percent to C$34.24.

But some key blue-chip energy producers offset the decline,
including Suncor Energy (SU.TO: ), up 0.2 percent at C$35.19, and
Canadian Natural Resources (CNQ.TO: ), up 0.65 percent at
C$70.78. Both were leading decliners earlier.

Investing Tools

($1=$1.06 Canadian)
(Editing by Peter Galloway)

CANADA STOCKS-TSX rises on strong golds