CANADA STOCKS-TSX falls on resource prices, U.S. data

Wed Jun 3, 2009 10:37am EDT
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* TSX down 2.08 percent at 10,368.27

* Energy sector down 3.4 pct as oil pulls back

* Bombardier down 7.5 pct after results (Adds details, quote)

By Jennifer Kwan

TORONTO, June 3 (Reuters) - Toronto's main stock market index fell sharply on Wednesday morning as falling oil and gold prices put downward pressure on the resource-laden index and U.S. data dampened optimism about economic recovery.

A major driver to the downside was a drop in the price of oil to below $68 a barrel after a recent rally. [ID:nSP477138]

Energy shares, down 3.4 percent, led the charge lower with oil company Canadian Natural Resources (CNQ.TO: Quote) down 4.9 percent at C$63.29, and EnCana Corp (ECA.TO: Quote) down 2.9 percent to C$60.86.

"We've had a pretty good runup in energy recently so I think people are beginning to take some profits," said Michael Sprung, president at Sprung & Co Investment Counsel.

"I would suspect a lot of that runup was based on a expectation that maybe the economy is turning around faster than it is."   Continued...