CANADA STOCKS-TSX extends retreat as commodities plunge

Thu May 5, 2011 5:29pm EDT
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   * TSX down 155.94 points, or 1.15 pct at C$13,455.38
 * Six of 10 main sectors end lower
 * Oil down 9 pct, silver off 7 pct, gold falls 3 pct
 (Adds details, analyst comments)
 By Solarina Ho
 TORONTO, May 5 (Reuters) - Toronto's main stock index
closed lower for a fourth day on Thursday as resource issues
took a heavy hit from a major selloff in the commodities market
that thrashed high-flying oil and metal prices.
 Energy issues slumped 2.68 percent while the materials
group, home to mining firms, skidded 2.54 percent. The two
groups, which make up roughly 50 percent of the TSX index,
dominated the lead decliners.
 Suncor Energy (SU.TO: Quote) was by far the biggest drag on the
index, sliding 5.26 percent to C$39.60. Goldcorp (G.TO: Quote) fell
3.36 percent to C$47.13, while Canadian Natural Resources
(CNQ.TO: Quote) gave back 2.6 percent to C$41.24.
 Barrick Gold (ABX.TO: Quote) was down 1.58 percent at C$45.33
while Teck Resources TCKb.TO retreated 3.71 percent to
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 155.94 points, or 1.15 percent at
C$13,455.38. Six of the index's 10 main groups were lower.
 The index has fallen roughly 3.5 percent since Friday's
close and hit its lowest level in seven weeks.
 The resource-heavy index took a heavy hit from oil prices,
which settled down 9 percent in a record retreat that drove
U.S. crude back under $100 a barrel.
 Precious metal prices also took a severe hit, with silver
plunging to its biggest one-day loss since 1980 and gold
falling more than 3 percent. Copper prices also sank more than
3 percent to their lowest level since December.
 Weak economic data from Europe and the United States fed
ongoing fears about global growth and inflation risks, which
sent commodity investors stampeding for the exits. [O/R] [GOL/]
 "Clearly, that's having an effect," said Irwin Michael,
portfolio manager at ABC Funds. "Commodities are clearly coming
in. There's been a lot of speculation in that area ... At some
point, it's going to burn itself out."
 ($1=$0.97 Canadian)