CANADA STOCKS-TSX falls as commodity price drop hits producers

Thu Jan 7, 2010 10:44am EST
 
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By Claire Sibonney

TORONTO Jan 7 (Reuters) - Toronto's main stock index fell on Thursday as weak commodity prices knocked resource stocks lower after the index rose for five straight sessions.

Goldcorp Inc G.TO fell 1.52 percent to C$42.72 and Suncor Energy SU.TO dropped 1.81 percent to C$38.56. Barrick Gold ABX.TO also fell 1.51 percent to C$42.53.

The index declined as oil fell below $83 a barrel and gold retreated from a three-week high. [O/R] [GOL/]

"We have a little profit taking across the board here ... The market has had a good tone to it the past three days. I don't think it's any indication of how we're going to go the next few days," said Bruce Latimer, a trader at Dundee Securities.

By 10 a.m. (1500 GMT) the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE had dropped 122.70 points, or 1.03 percent, at 11,821.84.

The financial sector also saw weakness across the board with heavyweights Bank of Nova Scotia BNS.TO down 1.14 percent at C$46.98 and Royal Bank of Canada RY.TO off 0.74 percent to C$54.93.

"People who have been buying the market in the last few days have been pulling in their reins and seeing what levels the market will drift to," Latimer added.

Latimer also said expectations that jobs data due Friday in the United States and Canada will be positive should contribute to the bullish trend the markets have seen since the start of new year. [ID:nN0595130]

($1=$1.04 Canadian) (Reporting by Claire Sibonney; editing by Jeffrey Hodgson)