CANADA STOCKS-TSX flat as gold shares drag; commodities mixed

Thu Jul 8, 2010 10:34am EDT
 
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* TSX off 0.1 percent at 11,384.18

* Nine out of 10 sectors higher

* Materials drive index lower (Adds details, quotes)

By Claire Sibonney

TORONTO, July 8 (Reuters) - Toronto's main stock index was little changed on Thursday morning in wobbly trading after two straight sessions of gains, on mixed commodity prices as weak gold stocks offset a rally by energy and base-metal miners.

Gold miners held the TSX in check as gold prices eased below $1,200 an ounce, as growing optimism over the global economy limited investor interest in safe-haven assets.

The gold subsector was down almost 2 percent [GOL/], with Barrick Gold Corp (ABX.TO: Quote) off 2.2 percent at C$44.94, and Goldcorp Inc (G.TO: Quote) down 2.3 percent at C$42.37.

"I think we might pause a bit after yesterday's move and go a bit sideways. The gold sector is the one putting pressure on the Canadian market." said Francis Campeau, broker at MF Global Canada in Montreal.

"It was a hedge trade and I think people are taking their money out of the golds, into more of the energy and financials."   Continued...