Toronto's main stock index ended higher for a fourth straight session on Friday as gold miners rallied on a record high bullion price, offsetting weak jobs data that fuelled worry about the economy's recovery. Shares of Barrick Gold Corp, one of the biggest contributors to the TSX's rise, were up 3.1 percent at C$44.83, while Goldcorp shares rose 3 percent to C$44.48.
The price of gold extended gains to hit a record high above $1,100 per ounce on Friday, due largely to a weak US jobs report. The US jobless rate unexpectedly jumped to a 26-1/2 year high of 10.2 percent last month. "Gold is reacting to the bad news this morning that the unemployment rate in the US is above expectations. Everyone is focusing on the fragility of the recovery," said Michael Sprung, president at Sprung & Co Investment Counsel.
Gold hit the record high shortly after markets opened and allowed the resource-heavy TSX to reverse an early selloff that was blamed on weak US and Canadian jobs reports. Canada lost 43,200 jobs in October, more than even the gloomiest analyst had predicted, dashing hopes for a quick economic rebound.
Both reports sent the TSX down as much as 82 points before gold spearheaded a quick move to higher territory. The S&P/TSX composite indexfinished the day up 69.72 points, or 0.62 percent, at 11,250.42, with eight of its 10 main groups higher. The index was up 3.1 percent on the week. Another bright spot on the market was Magna International Inc, said Fred Ketchen, director of equity trading at ScotiaMcLeod.
The stock surged 14.2 percent or C$53.76 on Friday, which helped to lift the broader consumer discretionary group by 2.3 percent. Magna shares surged a day after it posted a surprise quarterly profit and said it would focus on its core auto-parts business after the collapse of its deal to buy a stake in General Motors Co's Opel unit. The blue chip S&P/TSX 60 indexclosed 4.49 points, or 0.68 percent, higher at 667.31.
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