CANADA STOCKS-TSX hits 2-year high as miners gain after Fed

Reuters

* TSX ends up 14.72 points, or 0.11 percent, at 13,455.33

* Gold miners lead gainers, banks help

By Alastair Sharp

TORONTO, Oct 30 (Reuters) - Canada's main stock index rose

slightly on Wednesday with gold miners marking up strong gains

as the U.S. Federal Reserve maintained its support for a

stumbling U.S. economy.

The index has jumped sharply in recent weeks and is at a

two-year high. In addition to miners, banking stocks have been a

solid contributor to the rise, helped by the Bank of Canada's

move to drop its explicit rate-hike bias last week.

The Fed maintained its massive bond-buying campaign on

Wednesday as it sounded slightly more pessimistic about growth.

With continued loose monetary policy in Canada and the

United States likely, and signs of renewed growth in the Chinese

economy, investors seem confident that the resource-rich

Canadian index can add further gains.

"People are quite confident in the underlying strength in

the U.S. economy," said Elvis Picardo, strategist at Global

Securities in Vancouver. "It does seem that there is an

undercurrent of bullishness building up."

"On the Canadian side we still have a bunch of earnings to

look forward to. That should hopefully provide further

confirmation that investors are on the right track here."

The Toronto Stock Exchange's S&P/TSX composite index

ended up 14.72 points, or 0.11 percent, at 13,455.33.

It is at levels last seen in July 2011.

Uranium miner Cameco Corp jumped 4.6 percent to

C$19.87 after reporting a sharp jump in profit on higher prices

and sales.

Barrick Gold Corp surged 4.1 percent to C$21.55

after a Bloomberg report that it has considered selling part of

its copper business or taking a strategic equity investment to

reduce its debt.

The company, the world's top gold producer, reports results

on Thursday.

Yamana Gold Inc jumped 4.6 percent to C$10.71

despite reporting a sharp drop in profit as the company stuck to

its production outlook and said it was focused on cutting costs.

"If you are going to be somewhere in the developed markets,

Canada looks to be a pretty good place to be if the Fed

continues to be liberal with its money," said Gavin Graham,

chief strategy officer at Integris Pension Management Corp.

"It is the one that has lagged, and it has lagged because of

gold and materials and energy because people have been worried

about China," Graham said of the Canadian index.

Canadian National Railway Co slipped 0.3 percent to

C$114.76 as it continues to negotiate with the Teamsters union

to avoid a labor disruption.

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