CANADA STOCKS-TSX hits 4-month low as golds sell off

Fri Jul 2, 2010 4:59pm EDT
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* TSX falls 0.87 percent to 11,196.06

* Gold stocks dive after Thursday's bullion selloff

* U.S. payrolls fall for the first time this year (Updates to close. Adds details)

By Ka Yan Ng

TORONTO, July 2 (Reuters) - Toronto's main stock market index hit its lowest level in more than four months on Friday as resource issues, particularly gold miners, stumbled heavily.

Gold issues were reeling after bullion prices were hit hard on Thursday, when Canadian markets were closed. The index's materials sector, which includes golds, was down more than 3 percent.

Gold-mining issues were the main drag on the index even though bullion prices rebounded a bit on Friday. Thursday's fall was triggered by heavy selling by funds trying to cover losses in other markets.

Barrick Gold (ABX.TO: Quote) was off 4.9 percent at C$45.95, while Goldcorp (G.TO: Quote) was off 5.7 percent at C$43.95.

"The gold stocks are unfortunately catching up to that decline in gold price from yesterday, which is why we're seeing really large drops in some of the major gold producers," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver   Continued...