CANADA STOCKS-TSX retreats for 2nd day from recent rally

Wed Sep 8, 2010 4:49pm EDT
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* TSX down 59.72 points, or 0.49 percent, at 12,042.26

* Eight of TSX's 10 main sectors lower (Updates to close, adds details)

By Jennifer Kwan

TORONTO, Sept 8 (Reuters) - Toronto's main stock market index fell for a second straight session on Wednesday, led lower by weak gold miners as investors squared positions following recent strength.

The index's heavyweight materials sector, home to miners and fertilizer companies, sank 1 percent despite steadiness in bullion prices. [GOL/]

Heavyweight names on the downside included Barrick Gold (ABX.TO: Quote), down 1.5 percent at C$47.20, and Goldcorp (G.TO: Quote), also down 1.5 percent.

Energy producers fell 0.6 percent despite firmness in oil prices, which rose above $74 a barrel, Suncor Energy (SU.TO: Quote) dropped 0.8 percent to C$33.21, while Canadian Natural Resources (CNQ.TO: Quote) fell 1.24 percent to C$34.33. [O/R]

"The major reason for the TSX to be lower today is because of profit-taking. That's been caused because the TSX has reached a level that is fairly close to multi-month highs," said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.

"There is a section of the market that's quite bearish on the fundamentals. For the TSX to get to multi-month highs or get close to it is a heck of a solid reason for people to take money off the table."   Continued...