UPDATE 3-Toronto stocks dragged lower as oils retreat

Tue Jun 3, 2008 5:10pm EDT
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(Updates with closing numbers, details)

* Index gives up early gains to end 0.6 percent lower

* Energy shares lead retreat as as oil price tumbles

* Lululemon falls after cutting profit forecast

TORONTO, June 3 (Reuters) - The Toronto Stock Exchange's main index erased early gains to close lower in a roller-coaster session on Tuesday, as energy and gold-mining issues slumped amid a selloff in commodities.

After climbing more than 100 points, the Toronto benchmark turned sharply lower as the energy sector retreated with slumping oil prices.

Crude gave way after comments from U.S. Federal Reserve Chairman Ben Bernanke, warning about the inflationary risk of a weak U.S. dollar, gave a boost to the greenback and knocked oil down $3.45, or 2.7 percent, to $124.31 a barrel.

Suncor Energy SU.TO fell C$2.18, or 3.2 percent, to C$66.60, while Canadian Oil Sands Trust COS_u.TO slid C$1.55, or 3 percent, to C$49.60. The sector was down 1.4 percent.

The S&P/TSX composite index .GSPTSE closed down 85.57 points, or 0.58 percent, at 14,728.61 with all but two of its 10 main sectors on the downside. During the course of the day, the benchmark swung more than 100 points both higher and lower.   Continued...