CANADA STOCKS-TSX slips after two sessions of gains

Wed Feb 3, 2010 5:34pm EST
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* TSX down 17.88 points, or 0.16 pct, at 11,390.46

* Miners drag on index as base metal prices slide

* Potash Corp up 3.9 percent, helps cushion fall (Adds details, quotes)

By Jennifer kwan

TORONTO, Feb 3 (Reuters) - Toronto's main stock index ended slightly lower on Wednesday as investors grew cautious after two straight sessions of gains and a stronger greenback pressured commodity prices, weighing on miners.

First Quantum Minerals FM.TO topped the list of influential movers on the downside, dropping 8 percent to C$75.05, while Teck Resources TCKb.TO fell 2.2 percent to C$36.86, as the price of base metals pulled back.

Copper prices tumbled to 2-1/2-month lows as gains by the U.S. dollar and concerns over Chinese monetary tightening and European credit problems reflected an uncertain outlook for the global economic recovery. [FRX/] [MET/L] Gold prices were also weaker. [GOL/]

After two days of gains in which the TSX composite added 2.8 percent, it was not surprising to see a pullback, said Rick Meslin, head of Canadian equities at UBS.

"It's really kind of like a bit of a battle with people taking risk off and balanced by people who are looking for opportunities," he said.   Continued...