Toronto stocks closed higher on Thursday as a surge in the price of bullion hoisted the gold-mining index, but energy shares ended flat despite oil prices touching a record high. The Toronto Stock Exchange S&P/TSX composite index rose 28.45 points, or 0.27 percent, to 10,699.89.
"The gain really has been coming mainly from the materials side," said Julie Brough, senior advisor at Morgan Meighen & Associates. "We're seeing a little bit of a pick up in some of the consumer products but not enough to really create a stir in the index." The materials group, home to gold-mining stocks, rose a market-leading 2.2 percent, while the information technology group chipped in with a 1.2 percent gain. Five of the TSX's 10 subindexes ended higher.
Toronto's gold index rose 3.8 percent to its highest close since mid-March as bullion prices rose to their highest level of the year - $447 an ounce - mostly because of the lower US dollar.
Gold, which is denominated in US dollars, usually trades inversely to the greenback.
Shares of Barrick Gold Corp gained C$1.03, or 3 percent, to C$32.93, while Goldcorp shares rose C$1.03, or nearly 5 percent, to C$21.96.
The energy group, which has spearheaded the market's torrid climb this year on the back of higher oil prices, ended flat as investors hesitated to take on large positions in energy as oil prices touched $66 a barrel on refinery worries. Market momentum was positive as 791 issues advanced and 680 declined on a robust volume of 319 million shares valued at C$4.5 billion.
Technology shares were given a lift as analysts increased their earnings estimates for Hummingbird Ltd. The company unveiled adjusted earnings and forecasts for the fourth quarter late on Wednesday that topped estimates.
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