CANADA STOCKS-TSX slides as golds lead broad decline

Wed Dec 8, 2010 6:09pm EST
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  * TSX closes down 98.67 points, 0.74 percent, at 13,152.00
 * Nine of the index's 10 main groups lower
 * Gold prices fall 1 percent
 (Adds details, analyst's comments)
 By Solarina Ho
 TORONTO, Dec 8 (Reuters) - Toronto's main stock index
tumbled lower on Wednesday as sinking gold prices spearheaded a
broad-based retreat.
 All but one of the TSX's 10 main groups finished lower,
with the fall led by the materials sector, which was down 2
percent, as commodity prices took a hit from a surging U.S.
 Barrick Gold ABX.TO, the world's largest producer,
dropped 2.36 percent to C$53.47. Goldcorp G.TO was not far
behind, falling 2.89 percent to C$45.99.
 The gold miners dropped on a 1 percent fall in bullion
prices, which were hurt by profit-taking for a second day after
hitting record highs. [GOL/]
 "We're seeing some fairly large profit-taking in these
stocks, which had a fairly aggressive run over the last few
sessions," said Francis Campeau, a broker at MF Global Canada.
 The energy group, another index powerhouse, fell 0.98
percent on an unexpectedly large increase in U.S. fuel
inventories and a stronger U.S. dollar. [O/R]
 Canadian Natural Resources CNQ.TO slid 2.32 percent to
C$42.07, while Suncor Energy SU.TO, gave back 1.64 percent to
finish at C$36.06.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE finished down 98.67 points, or 0.74 percent, at
 South of the border, plans to extend Bush-era tax cuts sent
the U.S. dollar higher amid expectations of improved economic
growth, though that was mixed with fears of an even bigger U.S.
budget deficit. [US/]
 "That's giving people a little bit of a pause -- a little
bit of a concern it's going against what (Federal Reserve
Chairman) Ben Bernanke is trying to achieve," said Youssef
Zohny, associate portfolio manager, Van Arbor Asset
 "There's also a little bit of speculation that the Fed may
not be as aggressive on the monetary easing side as the U.S.
government extends some tax cuts."
 The index's financial group was the lone advancer, rising
0.56 percent. Manulife Financial MFC.TO gained 3.97 percent
to 15.98, while Toronto-Dominion Bank TD.TO was up 1.43
percent at C$73.20.
 "What you're seeing is a little bit of rotation from gold
stocks into the financials," said Zhony.
 Campeau also noted investors were putting money into high
dividend paying stocks, such as Rogers Communications
RCIb.TO, which was up 1.93 percent at C$35.45.
  Bonterra Energy BNE.TO was the biggest net gainer, up
C$3.13, or 7.06 percent, at C$47.48. The oil and gas company
has climbed more than 12 percent since announcing a dividend on
Dec. 2.
 ($1=$1.01 Canadian)
 (Reporting by Solarina Ho; editing by Peter Galloway and Rob