CANADA STOCKS-TSX pulled lower by weak golds

Mon Oct 4, 2010 12:08pm EDT
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 * TSX down 0.4 percent at 12,311.80
 * Nine of 10 main sectors lower
 (Adds details, quote)
 By Solarina Ho
 TORONTO, Oct 4 (Reuters) - Toronto's main stock index was
lower late on Monday morning as weaker bullion prices weighed
on gold-mining issues.
 The TSX's key materials sector, home to mining stocks, sank
1.2 percent. Heavyweight Barrick Gold (ABX.TO: Quote) was down 1.8
percent at C$47.09, while Agnico-Eagle Mines (AEM.TO: Quote) fell 1.6
percent to C$71.35.
 Gold prices hovered near record-high levels on Monday, but
struggled to gain traction as the U.S. dollar rose on resurgent
fears over some euro zone economies. [GOL/] [FRX] The U.S.
dollar and gold are often seen as rival safe havens.
 Teck Resources TCKb.TO dropped 1.6 percent to C$42.67 as
a rally in copper prices stalled, in part due to the
strengthening greenback. [MET/L]
 At 11:33 a.m. (1533 GMT), the S&P/TSX composite index
.GSPTSE was down 51.28 points, or 0.4 percent, at 12,311.80,
with nine of its 10 main sectors lower.
 "We would expect to see the stock market take a little
pause, especially if gold prices start to peter off here as the
U.S. dollar starts to pick up strength, and that could be a
little punishing for October," said Barry Schwartz,
vice-president and portfolio manager at Baskin Financial
 "I would expect that, after a terrific September, the
Canadian stock market and U.S. stock market are probably due
for some kind of pause," he said.
 The TSX index ended September, historically the
worst-performing month of the year, up 3.8 percent, and
finished the third quarter up 9.5 percent.
 The Toronto index moved in step on Monday with U.S. stocks,
which were also lower as new Swiss bank capital rules spurred
concern about bank profits. [.N]
 Investors are also likely waiting for employment data on
both sides of the border at the end of the week for more clues
on the state of the economic recovery.
 MI Developments MIMa.TO MIM.N, a top net gainer, jumped
33.2 percent to C$14.52 after it confirmed that a company
controlled by billionaire Magna International (MG.TO: Quote) founder
Frank Stronach plans to make a $13 a share bid for the real
estate firm. [ID:nN04108400]
 Potash Corp (POT.TO: Quote), embroiled in a $39 billion hostile
takeover fight with BHP Billiton (BHP.AX: Quote), remained in the
spotlight and was up 1.9 percent at C$147.73 following an
independent report for the Saskatchewan government on Monday
that said a BHP takeover of Potash would cost the province at
least C$2 billion ($1.96 billion) in taxes and royalties over
10 years while having little or no net effect on employment in
the industry.
 ($1=$1.02 Canadian)
 (Reporting by Solarina Ho; editing by Peter Galloway)