TORONTO -- Strength in gold and metals issues drove the Toronto Stock Exchange's main index almost 135 points higher Wednesday in a session marked by thin volume as an extended Christmas holiday break continued to sideline many investors.
Spurred by a morning surge, the S&P/TSX composite index jumped 134.42 points, or nearly 1.1 percent, to close at 12,852.59. The S&P/TSX 60 index of Canadian bluechips rose 9.56 points, or 1.31 percent, to 739.57.
All but one of the composite's 10 main groups rose, with the resources-laden materials group leading the charge by adding 3.18 percent. The sole loser was utilities, slipping 0.29 percent.
Wednesday was the first day this week that the Toronto Stock Exchange was open for trading, but there appeared to be little pent up demand during the session, with volume for the day a relatively scant 164.7 million shares worth C$2.58 billion.
Stocks that gained beat out decliners 861 to 693.
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The market day was essentially bereft of corporate news, and money managers and investors alike stretched out their holidays.
"The only activity that's taking place that we've seen here is from the very limited skeleton staff that we have in," said Paul Taylor, chief investment officer at BMO Harris Private Banking in Toronto.
Even those employees were working on client-account opening and management, Taylor said, adding: "Other than that, it's very quiet."
The strength in gold shares was not due to any major move in the price of gold, either. Gold for February delivery rose just $3.40 to $630.30 an ounce in New York.
However, the U.S. dollar slipped, lending support to gold shares, said Gavin Graham, chief investment officer at the Guardian Group of Funds.
"Even though there might not actually be a great deal of specific movement in the gold price, it's more a reflection of the fact the (U.S.) dollar is going the other way," Graham said.
The dollar weakness followed an announcement by the United Arab Emirates that it would keep more of its foreign currency reserves in the euro and sell off some of its U.S. dollar holdings.
Among the biggest gainers of the session were Royal Gold Inc., which jumped C$1.71, or 4.2 percent, to C$42.66, and zinc giant Teck Cominco Ltd., which gained C$3.33, or 4 percent, to C$87.08.
South of the border, the Dow Jones industrial average ended the day at a record amid a broad-based rally, gaining 102.94 points, or 0.8 percent, to close at 12,510.57. The tech-heavy Nasdaq also moved higher, picking up 17.71 points, or 0.7 percent, to close at 2,431.22.
($1=$1.16 Canadian)
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