CANADA STOCKS-TSX inches higher on Yellen news

Reuters

* TSX up 15.78 points, or 0.12 percent, at 12,707.45

* Expected Yellen nomination for Fed chair provides somesupport

* Gold miners suffer as price of bullion falls

By Alastair Sharp

TORONTO, Oct 9 (Reuters) - Canada's main stock index wasslightly higher on Wednesday, with broad gains notched bybanking, energy and telecom stocks offsetting a decline in goldmining stocks as investors took some comfort from the pendingnomination of a new Federal Reserve chief.

The optimism about the nomination of Janet Yellen to run theU.S. central bank - she is expected to tread carefully inwinding down economic stimulus that has bolstered stocks - wassubdued however by the ongoing shutdown of the U.S. government.

"There was a spurt of optimism that came from the Yellenannouncement, largely because the market is searching for anysense of certainty in this environment," said Craig Fehr,Canadian market strategist at Edward Jones in St. Louis,Missouri.

"At the end of the day however, as positive as that newsmight have been interpreted by the markets, the focus isremaining on Washington and we're seeing little progress towardaddressing some of the issues that loom in the next severaldays."

The Toronto Stock Exchange's S&P/TSX composite index was up 15.78 points, or 0.12 percent, at 12,707.45 bymid-morning.

Three banks were in the top five of positive influences,with Bank of Nova Scotia adding 0.6 percent to C$59.19,Royal Bank of Canada up 0.5 percent at C$66.73, andToronto-Dominion Bank gaining 0.4 percent to C$91.41.

But the single biggest positive impact was from SuncorEnergy, which added 1 percent to C$36.17.

At the other end of the spectrum, major gold miner GoldcorpInc fell 1.7 percent to C$25.04 and Barrick Gold Corp lost 1.6 percent to C$17.98.

The price of gold fell 1 percent as the Yellen news boostedthe U.S. dollar.

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