By Jennifer Kwan
TORONTO (Reuters) - Toronto's main stock index rose
Wednesday, bolstered by a firmer bullion price and stronger
than expected U.S. economic data, which fueled cautious
investor optimism about global economic recovery.
Gold miners on the upside included Barrick Gold,
up 2.2 percent at C$43.38, and Goldcorp Inc, up 2.4
percent at C$40.72, and Agnico-Eagle, which rallied 4
percent to end the day at C$59.67.
The price of bullion broke above $1,200 an ounce as strong
physical demand gave the metal its sixth straight daily gain.
U.S. Institute of Supply Management services activity data
for July came in better than market expectations, which helped
to boost investor optimism, analysts said.
As well, data showed U.S. private employers added 42,000
jobs in July, slightly better than economists had forecast.
"The growth story is there but it's at a somewhat subdued
rate. If that's the case, we shouldn't bet too much on a
double-dip scenario. I think the market is welcoming that
bias," said Sid Mokhtari, market technician and director,
institutional equity research, at CIBC World Markets.
Mokhtari also said the market was in "risk-on" mode amid
recent weakness in the U.S. dollar.
"The general thesis right now is that U.S. dollar weakness
has been dominant the past little while, which has ignited the
argument, or the bias, by a lot of investors that the risk-on
trade is back on," he said.
The Toronto Stock Exchange's S&P/TSX composite index
ended the day up 62.45 points, or 0.53 percent, at
11,845.05, with eight of its 10 main sectors higher.
Mokhtari said the market was trading above its 200-day
moving average, which was "very constructive." However, strong
"From a resistance perspective you're coming up to an
important area that was previously not welcomed. That's at
about north of 12,000," he said.
Fertilizer maker Agrium Inc, rose 3.6 percent to
C$67.41 after it said its quarterly profit rose on increased
demand for agricultural inputs, higher crop nutrient margins
and a jump in potash sales volumes.
Research In Motion was the top net loser, falling
4.5 percent to C$54.24 on concerns that Saudi Arabia will block
its key messaging service.
RIM is facing mounting demands from governments in the
Middle East and India that seek access to its vaunted
encryption system, citing national security.
The worries come as RIM launched its new BlackBerry Torch
The security tussle and uncertainty about the Torch's
success weighed on RIM shares, said Peter Chandler, senior
vice-president at Canaccord Wealth Management.
"They're not getting a complete, clear bill of health," he
The blue chip S&P/TSX 60 index closed 3.22 points,
or 0.47 percent, higher at 691.75.
(Reporting by Jennifer Kwan; editing by Peter Galloway)