En Francais

By Franco Pingue
Reuters
Wednesday, November 12, 2003

TORONTO, Nov 12 (Reuters) - A surge in gold-mining issues helped Toronto stocks snap a three-session losing skid on Wednesday but market-wide weakness kept the key index from matching gains in the United States.

The Toronto Stock Exchange S&P/TSX composite index (.GSPTSE) rose 25.09 points, or 0.32 percent, to 7,797.33.

Unlike U.S. stock markets, the lethargic Toronto market failed to take advantage of a U.S. report that said demand in the semiconductor industry is heading toward levels not seen since 2000.

Some experts said Toronto's lack of conviction came after several market players sat out Tuesday's session to observe Remembrance Day in Canada.

"Any time you have one holiday in the week, the whole week turns out to be really stale and that's exactly what's happening," said Steve Gold, research analyst with Leeward Hedge Funds Inc.

"All bets are made, all cards are on the table and people are just waiting to see what's going to happen into year-end."

Research firm Gartner Inc. said the semiconductor industry will see sales in 2004 increase 20 percent from 2003, news that helped give U.S. investors a reason to step back into the market following recent declines.

The Dow Jones industrial average (.DJI) rose 111.04 points, or 1.14 percent, to 9,848.83, while the tech-heavy Nasdaq composite index (.IXIC) jumped 42.36 points, or 2.19 percent, to 1,973.11.

In Toronto, a 2.6 percent gain by the materials sector, which includes Canadian gold-mining issues, marked the only weighty advance and held the key index afloat.

The telecoms sector fell 0.8 percent, while energy issues dipped 0.3 percent. Six of the TSX's 10 subindexes were lower.

Gold stocks finished nearly 6 percent higher as the U.S. currency weakened and helped support gold prices. A weaker greenback makes gold, which is priced in U.S. dollars, cheaper for holders of other currencies.

Barrick Gold Corp. (ABX.TO), the most weighty gold-mining issue on the index, rose C$1.20, or 4.5 percent, to C$27.70, while Placer Dome Inc. (PDG.TO), the index's No. 2 gold issue, was up C$1.34, or 6.5 percent, at C$21.97.

Financial stocks, which have been responsible for much of the market's recent strength, finished flat ahead of the big banks' quarterly reports, which are expected later this month.

Market momentum was positive as 674 issues advanced and 568 declined, while a robust 289 million shares valued at C$2.7 billion changed hands.

The Toronto market has lost 1.4 percent since touching a 19-month high last week, but some experts say another shot of positive economic data could push it higher.

"What investors have seen so far they've liked," said Adrian Mastracci, investment counsel and president of KCM Wealth Management. "But what they would like to see is a little more data as proof that this strength is really true and the one that they are looking for."

($1=$1.30 Canadian)

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