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: Quote) down 3.2 percent to C$29.08 and Goldcorp Inc (G.TO: Quote) 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