TSX drops as fading Syria fears hit oil, gold shares

Tue Sep 10, 2013 4:35pm EDT
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By John Tilak

TORONTO (Reuters) - Canada's main stock index slipped on Tuesday as concerns about a U.S. military strike on Syria faded, dragging shares of gold miners and energy companies lower.

Data from China that showed industrial output topped expectations in August failed to lift sentiment on the Toronto market.

Prices for bullion and oil surged in recent weeks as investors looked for safe havens as fears spawned by the Syrian conflict escalated. This week gold and oil have given up some of those gains.

The bullion price shed about 1.6 percent on Tuesday, pushing gold miners down 4.8 percent. A nearly 2 percent decline in the price of oil helped take energy producers down 0.4 percent. <O/R><GOL/>

Tensions relaxed after Syria accepted a Russian proposal to give up chemical weapons in hopes of winning a reprieve from a U.S. military strike.

"Some of the war premium in gold and oil is starting to come out of the market today," said Youssef Zohny, portfolio manager at Stenner Investment Partners, a unit of Richardson GMP.

"There's definitely some short-term volatility," he added. "You will definitely see stabilization and some improvement in the commodity space."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 30.16 points, or 0.23 percent, at 12,824.48. Six of the 10 main sectors on the index were in the red.   Continued...

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