TSX falls as gold miners, energy stocks weigh

Thu Jul 7, 2016 5:14pm EDT
 
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index fell on Thursday as gold miners retreated following their sharp rally since Britain's vote to leave the European Union and as a reversal in oil prices weighed on energy companies.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 96.60 points, or 0.68 percent, at 14,134.46.

Its energy group fell 1.5 percent, reversing earlier gains, as oil prices fell to two-month lows after a U.S. weekly crude draw that disappointed bullish traders. [O/R]

"People are cautious, people are taking some profits and waiting to see what happens tomorrow with non-farm payrolls," said Ian Makamoto, director of research at MacDougall, MacDougall & MacTier, referring to U.S. jobs data due on Friday.

Also weighing on the index was its hefty gold mining group, which pulled back following a steady rise since the Brexit vote sideswiped financial markets in late June.

The biggest drags on the market included two of the world's largest producers, with Barrick Gold Corp ABX.TO down 3.2 percent to C$29.08 and Goldcorp Inc G.TO off 2.2 percent at C$25.50.

The S&P/TSX Global Gold sub-index .SPTTGD had rallied more than 20 percent since the vote, as investors rushing to buy bullion amid economic uncertainty pushed the metal to a two-year high. [GOL/]

"The gold commodity itself should be able to lift as time progresses," said Sid Mokhtari, a market technician at CIBC World Markets.   Continued...

 
A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch