CANADA STOCKS-TSX tripped up by commodities and bank shares

Tue Dec 8, 2009 4:28pm EST
 
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 * TSX ends down 120.70 points at 11,368.93
 * Fourth straight lower close
 (Adds details, comments and official numbers)
 By Frank Pingue
 TORONTO, Dec 8 (Reuters) - Toronto's main stock index slid
to its lowest level in more than a week on Tuesday as a drop in
commodity prices shook the resource-heavy index while shares of
Scotiabank added pressure after it missed profit forecasts.
 Barrick Gold ABX.TO led the fourth-straight decline in
the TSX as its shares dropped 3.4 percent to C$43.10, while
Goldcorp G.TO slid 3 percent to C$42.24.
 The skid in gold miners came as bullion extended its
decline from last week's record high due to a stronger
greenback, which dents gold's appeal and makes dollar-priced
commodities more expensive for holders of other currencies.
[GOL/]
 Energy shares also contributed to the selloff as a downward
revision to the U.S. government's forecast for global demand
growth in 2010 hit sentiment and weighed on oil prices. [O/R]
 Suncor Energy SU.TO shares fell 1.9 percent to C$36.04,
while Canadian Natural Resources CNQ.TO slid 2.6 percent to
C$66.91.
 The decline in the TSX did not draw much concern given its
massive advance off the five-year low it fell to in March. It
is up 52 percent from that low, which may explain the caution
that has appeared in recent sessions.
 "You would expect sentiment to be a little stronger at this
time of the year than it is currently," said Elvis Picardo,
analyst and strategist at Global Securities in Vancouver.
 "You can attribute that to the fact that we have had an
exceptional year so far and so there might be some
position-squaring going on as we head into yearend."
 Heavyweight financial shares were also a drag on the TSX
after Bank of Nova Scotia BNS.TO reported quarterly results
that analysts felt did not build on strong results from rival
banks last week. [ID:nN07115511]
 Shares of Scotiabank ended down 2.1 percent at C$47.61,
while Canadian Imperial Bank of Commerce CM.TO slid 1.5
percent to C$69.14.
 The S&P/TSX composite index .GSPTSE ended down 120.70
points, or 1.05 percent, at 11,368.93. Earlier in the day it
fell as low as 11,342.48, its lowest point since Nov. 27.
 ($1=$1.06 Canadian)
 (Editing by Peter Galloway)