CANADA STOCKS-TSX slides as golds lead broad decline

Wed Dec 8, 2010 4:54pm 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
 (Updates to close, adds details, analyst's comments)
 By Solarina Ho
 TORONTO, Dec 8 (Reuters) - Toronto's main stock index
languished in negative territory on Wednesday as sinking gold
prices led to a broad retreat.
 All but one of the TSX index's 10 main groups were in the
red, with the fall led by the materials sector, which was down
2 percent.
 Barrick Gold (ABX.TO: Quote), the world's largest gold miner,
dropped 2.36 percent to C$53.47. Goldcorp (G.TO: Quote) 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/]
 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: Quote), the country's No. 1
independent oil producer, slid 2.32 percent to C$42.07, while
Canada's biggest energy company, Suncor Energy (SU.TO: Quote), 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
13,152.00.
 The index's financial group was the lone advancer, rising
0.56 percent. Manulife Financial (MFC.TO: Quote) gained 3.97 percent
to 15.98, while Toronto Dominion Bank (TD.TO: Quote) 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 Youssef Zohny, associate
portfolio manager, Van Arbor Asset Management.
 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)