UPDATE 1-Toronto stocks slip as resources retreat

Fri May 9, 2008 11:21am EDT
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(Updates to mid-morning)

TORONTO May 9 (Reuters) - The Toronto Stock Exchange's main index fell on Friday, as resource shares were hit by profit-taking after a strong run amid soaring oil prices.

The materials group led the way down, giving up 2.3 percent, while its subindex of gold producers slid 2.8 percent as U.S. gold futures eased.

Goldcorp G.TO was off C$1.50, or 3.7 percent, to C$39.20, while fertilizer company Potash Corp of Saskatchewan POT.TO was down C$4.34, or 2.1 percent, at C$198.31.

Meanwhile, the energy sector edged down 0.5 percent, as investors locked in gains while the price of oil jumped to another peak above $126 a barrel.

"I think that the two areas on the TSX that have held up nicely are obviously the energy and materials side, and we feel at these levels we just want to see a pullback in them," said Paul Harris, portfolio manager at Avenue Investment Management.

The S&P/TSX composite index .GSPTSE was down 42.62 points, or 0.29 percent, at 14,565.37 after bouncing around both sides of the break-even mark after the open. Four of its 10 main sectors were lower.

In the energy group, Suncor Energy SU.TO was off C$1.51, or 1.2 percent, to C$124.74, while Imperial Oil IMO.TO dipped 92 Canadian cents, or 1.6 percent, to C$58.27.

On the upside, the financial sector added 0.9 percent, with Toronto-Dominion Bank TD.TO up 95 Canadian cents, or 1.4 percent, at C$67.75, and Bank of Nova Scotia BNS.TO ahead 78 Canadian cents, or 1.6 percent, at C$48.96.   Continued...