CANADA STOCKS-TSX pulls back from 11,000 as commodities fall

Wed Aug 5, 2009 10:39am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* 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: Quote) was down 3 percent at C$40.42, and Barrick Gold (ABX.TO: Quote) 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: Quote) dropped 1.1 percent to C$58.23, while Canadian Natural Resources (CNQ.TO: Quote) 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."   Continued...