* Market takes breather after Tuesday’s rise above 11,000
* TSX falls 35.58 points, or 0.32 percent, to 10,982.52
* TriStar Oil climbs 23.4 pct on takeover bid by Petrobank (Adds details, quotes)
By Jennifer Kwan
TORONTO, Aug 5 (Reuters) - Toronto’s main stock index fell on Wednesday morning as commodity-based stocks weakened and as investors took a breather after the index raced above the 11,000-point level on Tuesday.
The index’s materials group, home to miners and fertilizer companies, fell 0.9 percent as gold prices slipped. Goldcorp (G.TO) was down 3 percent at C$40.42, and Barrick Gold (ABX.TO) dropped 1.7 percent to C$38.24.
The energy group fell 0.8 percent as the price of oil CLc1 slipped toward $70 a barrel. EnCana Corp (ECA.TO) dropped 1.1 percent to C$58.23, while Canadian Natural Resources (CNQ.TO) fell 0.8 percent to C$67.49.
”It’s so clear that in regards to the last two weeks we’ve had such a tremendous rally you’re going to have retractions and selloffs,“ said Paul Gardner, partner and portfolio manager at Avenue Investment Management. ”I would not be surprised if we were in negative territory for most of the day.
“It can’t be one way all the time. You have to take pause and take a breath and figure out whether this is sustainable.”
At 10:09 a.m. (1409 GMT), the S&P/TSX composite index .GSPTSE was down 35.58 points, or 0.32 percent, at 10,982.52, with eight of its 10 main groups lower.
The index surged above the 11,000-point level on Tuesday, its highest close in 10 months, as the market played catch-up with global stocks after Monday’s holiday in Canada.
Among individual stocks. TriStar Oil (TOG.TO) rose 23.4 percent to C$14.20 on Wednesday after Petrobank Energy and Resources Ltd PBG.TO said it would buy TriStar in a cash and stock deal worth about C$2.24 billion and form PetroBakken Energy Ltd, a Bakken-focused light-oil producer. [ID:nBNG267458]
$1=$1.08 Canadian Reporting by Jennifer Kwan; editing by Peter Galloway