October 7, 2010 / 2:57 PM / 7 years ago

CANADA STOCKS-TSX slides as investors lock in gold gains

 * TSX falls 0.52 percent to 12,436.92
 * Golds fall as the precious metal slips off record high
 * Decline comes after index hit 2-yr highs this week  (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 7 (Reuters) - Slumping gold shares pulled Toronto’s main stock index lower on Thursday morning with much of the rest of the market sidelined ahead of key North American employment reports on Friday.
 After the index hit two-year highs this week, eight of its 10 main groups were lower on Thursday as investors set up for release of the U.S. and Canadian jobs reports for September.
 At 10:25 a.m. (1425 GMT), the S&P/TSX composite index .GSPTSE was down 64.80 points, or 0.52 percent, at 12,436.92. It opened a touch higher but fell quickly as the price of gold turned lower after hitting a series of record highs. [GOL/]
 The lower gold price and declining oil prices hit the index’s commodities groups. Materials, home to gold miners, was off 1.16 percent, while the energy group was off 0.48 percent.
 Key decliners included Barrick Gold (ABX.TO), down 1.1 percent at C$48.56, and Suncor Energy (SU.TO), off 0.87 percent at C$34.27. Teck Resources TCKb.TO was down 1.4 percent at C$43.76. Kinross Gold (K.TO) fell 1.8 percent to C$19.41, while Agnico-Eagle Mines (AEM.TO) lost 2.7 percent to C$72.97. 
 “Gold stocks, which have been super strong the last few sessions, are just taking a breather,” said Francis Campeau, broker at MF Global Canada in Montreal.
 “We’ve really seen quite a strong reversal (in the index). It’s probably profit-taking ahead of tomorrow’s payrolls numbers out of the U.S.”
 He also noted that foreign exchange markets were volatile as the U.S. dollar continued to slide on the prospect of more money-printing by the U.S. Federal Reserve. A falling U.S. dollar, linked to the expected inflow of fresh greenbacks into the U.S. economy, has recently pushed money flows into oil and other commodities. [O/R] [FRX/]
 In corporate news, Rogers Communications Inc (RCIb.TO), the owner of Canada’s biggest wireless company, was up 1 percent at C$39.54 a day after it said it launched a comprehensive technical trial of Long Term Evolution wireless network technology with Ericsson Canada. [ID:nSGE6950MG]
 ($1=$1.01 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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