CANADA STOCKS-TSX rattled by energy and gold selloff

Mon Jun 8, 2009 10:04am EDT
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* TSX down 180.80 points at 10,388.49

* Energy and gold shares lead drop

* Slide follows 1.9 pct gain last week (Adds details and comments)

By Frank Pingue

TORONTO, June 8 (Reuters) - Toronto's main stock market index fell sharply on Monday morning, relinquishing a chunk of last week's gain, as a stronger U.S. dollar shook commodity prices and weighed on key energy and gold shares.

Oil prices fell further from last week's seven-month high above $70 a barrel and yanked the index's energy sector down by 1.8 percent. Oil companies were among the main drags on the TSX index.

Shares of Suncor Energy (SU.TO: Quote) were down 3 percent at C$37.26, while Canadian Natural Resources (CNQ.TO: Quote) was off 2.5 percent at C$63.10.

A firmer U.S. dollar makes commodities such as oil, which is denominated in the currency, look more expensive to holders of other currencies.

"The U.S. dollar has been stronger in the last few trading days and so your commodities are all getting hit," said Sal Masionis, stockbroker at Brant Securities. "But that's normal since we had a good rally in commodities like oil and gold."   Continued...