TSX sags as Goldcorp leads dive in resource stocks

Fri Nov 2, 2012 5:21pm EDT
 

By Solarina Ho

TORONTO (Reuters) - Canada's benchmark stock index fell for the first time in seven sessions on Friday as a 2 percent drop in bullion and crude prices spurred a retreat in mining and energy stocks, with miner Goldcorp Inc (G.TO: Quote) leading the way.

Spot gold hit a two-month low, sliding 2 percent to below $1,690 and marking its fourth consecutive weekly decline, after a report showed a higher-than-expected number of U.S. jobs were created in October.

The U.S. data lowered expectations for more economic stimulus from global central banks.

"That helped the U.S. dollar strengthen and that affected the commodity prices," said Sal Masionis, stockbroker at Brant Securities.

A strong dollar makes commodities priced in the U.S. dollars more expensive for holders of other currencies.

Oil and gasoline futures fell more than 2 percent on Friday after Washington issued a waiver allowing foreign tankers to bring fuel to the U.S. Northeast, pointing to some relief to supply disruptions in the aftermath of super storm Sandy. <O/R>

Five of the top six biggest drags on the TSX index were gold miners, which are a part of the index's materials group. The group encompasses nearly 20 percent of the index's weight and finished down 3.02 percent.

Goldcorp sank 5.02 percent to C$42.91. Yamana Gold Inc (YRI.TO: Quote) fell 5.09 percent to C$19.00, while Agnico Eagle Mines Ltd (AEM.TO: Quote) tumbled 6.3 percent to C$52.65.   Continued...

 
A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch