CANADA STOCKS-TSX falls as commodity prices weigh on resources

Fri Nov 2, 2012 11:32am EDT
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By Solarina Ho
    TORONTO, Nov 2 (Reuters) - Canada's benchmark stock index
dropped for the first time in seven days on Friday as data
showing quicker U.S. jobs growth drove bullion prices lower,
pressuring gold miners, while oil and gas companies tracked U.S.
crude prices.
    Spot gold fell to an eight-week low, below $1,700, after the
U.S. dollar jumped to a seven-week high on data that showed a
higher-than-expected 171,000 jobs created in October versus a
forecast of 125,000.  
    Gold miners, which are a part of the materials group, lead
the index lower with Goldcorp Inc off 3.19 percent to
    Barrick Gold Corp, which already plunged 9.48
percent on Thursday after posting a sharp decline in
third-quarter profit, added to earlier losses, falling another
2.38 percent to C$45.69. Agnico Eagle Mines Ltd slumped
5.3 percent to C$53.19.
    The overall materials group, which make up nearly 20 percent
of the index's weight, was down 2.02 percent.
    In late morning, the Toronto Stock Exchange's S&P/TSX
composite index was down 68.25 points, or 0.55
percent, 12,431.51. Six of the TSX's 10 main sectors were in
negative territory.
    "We have to remember the TSX index has been up six days in a
row, which is somewhat surprising especially when we've had a
few earnings misses from some large cap names," said Gareth
Watson, Vice President, Investment Management & Research at
Richardson GMP.
    While lower commodity prices were the primary factor, Watson
noted that some profit taking could also be a driver.
    About 25 percent of the index are energy stocks, which were
down 1.09 percent, following lower U.S. crude prices. Crescent
Point Energy was off 3.79 percent to C$39.86, while
Canadian Natural Resources Ltd was down 1.75 percent at
    Modest gains among financial stocks - about a third of the
index - helped stem some of the losses. Toronto Dominion Bank
 provided the biggest boost to the index, climbing 0.51
percent to C$82.15, while Manulife Financial Corp 
advanced 0.57 percent to C$12.43. The overall group was up 0.11
    In corporate news, Inmet Mining Corp, which
reported a 19 percent rise in third-quarter profit, helped by
higher copper sales volume from its Spanish Las Cruces mine,
jumped 5.61 percent to C$55.56. 
    Bombardier Inc was down 1.46 percent at C$3.70.
Some 330 workers at a Quebec-based rail-car factory, belonging
to the train-maker, went on strike on Thursday over outsourcing
and pension fund issues.