CANADA STOCKS-TSX dives as oil and copper prices drop

Tue May 3, 2011 11:17am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX drops 1.24 percent to 13,761.29
 * All 10 sectors fall, driven lower by resources
 * Conservative election victory seen providing stability
 (Adds details)
 By Ka Yan Ng
 TORONTO, May 3 (Reuters) - Toronto's main stock index
tumbled to a near two-week low on Tuesday morning, driven down
by weakening commodity shares as oil and copper prices dropped,
with the victory of the business-friendly Conservatives in
Monday's election having little immediate impact.
 The index's energy and materials sectors shed more than 2
percent as a strengthening U.S. dollar sapped investor appetite
for commodities. Most commodities are priced in U.S. dollars.
[GOL/][IO/R]
 Suncor Energy SU.TO fell 3.5 percent to C$42.44, the
heaviest decliner, even though the country's biggest energy
company reported a higher quarterly profit on Tuesday. Its drag
on the index was twice that of the next nearest decliners,
which were a pair of gold mining stocks. [ID:nL3E7G312N]
 Goldcorp G.TO fell 2.5 percent to C$48.86, while Barrick
Gold ABX.TO lost 1.1 percent to C$46.75 as gold prices
slipped from record highs above $1,570 an ounce on waning
safe-haven buying. Silver and copper prices were also lower on
the day.
 "Many sectors are under pressure, and commodities are
(down) on the follow-through from yesterday," said Francis
Campeau, broker at MF Global Canada, in Montreal.
 At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down down 173.22 points,
or 1.24 percent, at 13,761.29. All 10 main index groups were
lower, dragging the benchmark as low as 13,753.36 in early
dealings, its lowest point since April 20.
 Campeau said the solid Conservative victory in Monday's
election will offer the market long-term stability.
 The business-friendly party, which has formed a minority
government since 2006, now has a clear majority mandate to
govern for four years.
 "By (the Conservatives) getting a clear majority in the
Parliament, markets are able to handicap investment
opportunities better," said Stephen Wood, chief investment
strategist for North America at Russell Investments in New
York, noting that energy shares will probably get a boost, as
will tax-sensitive and interest-rate sensitive sectors.
 The main stock market traded cautiously in the final week
of the election campaign with analysts attributing some of the
retreat to wariness inspired by the surge of the left-leaning
New Democratic Party (NDP) in public opinion polls.
[ID:nN29174448]
The NDP rose to second place in the election, becoming the
official opposition for the first time, unseating the Liberals
who dropped to third place, also for the first time in history.
[ID:nN03272319]
 ($1=$0.95 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)