CANADA STOCKS-TSX falls on gold miners; eye on EU summit

Tue Jun 26, 2012 11:56am EDT
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* TSX down 58.31 points, or 0.51 percent, at 11,272.08
    * Gold miners lead the way
    * Losses offset by fertilizer producers

    By Allison Martell
    TORONTO, June 26 (Reuters) - Canada's main stock index fell
on Tuesday, led lower by gold miners as the price of the
precious metal eased and investors looked ahead to the European
Union summit on Thursday and Friday.
    Gold fell as Spanish bond yields rose and the euro slid, and
hopes faded that the summit would make progress in resolving the
euro zone's debt crisis. 
    John Kinsey, portfolio manager at Caldwell Securities Ltd,
said many investors were on the sidelines ahead of the summit,
but he did not see major progress coming out of the meeting.
    "They have a track record of just talking and talking, and
nothing really concrete comes forward, so I don't know why this
would be anything different," he said.
    Kinsey said volume was light as investors waited for the
summit's outcome.
    At about 11:40 a.m. (1540 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 58.31 points, or 0.51
percent, at 11,272.08.
    Spain's short-term borrowing costs nearly tripled, and Italy
also sold debt, with yields rising to the highest since
    The heavyweight materials group, which includes gold miners,
lead the market lower, falling 1.6 percent. Barrick Gold
 fell 4.0 percent to C$37.87, and Goldcorp Inc 
was 2.5 percent lower at C$38.21. The two stocks played the
biggest role in pulling the index lower.
    Losses were offset by fertilizer producers. Potash Corp
 rose 3.7 percent to C$43.79, and Agrium Inc 
was 1.3 percent higher at C$88.98 as corn continued to rise.
    Corn rose by the daily maximum 40 cents on Monday as an
unexpectedly hot, dry spell this week damaged crops that are
already in their worst condition in 24 years. 
    Shares of the fertilizer makers typically track the prices
of fertilizer-intensive corn closely as higher grain prices are
likely to spur farmers to increase their use of crop nutrients.