CANADA STOCKS-Oil shares lead broad TSX retreat

Tue Nov 10, 2009 10:45am EST
 
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 * TSX falls 0.21 percent to 11,462.23
 * Five-day rally halted by profit-taking, resources drop
 * Cossette agrees to be acquired by Mill Road Capital
 (Adds details)
 By Ka Yan Ng
 TORONTO, Nov 10 (Reuters) - Toronto's main stock index fell
on Tuesday morning as Canadian Natural Resources (CNQ.TO: Quote),
Suncor Energy (SU.TO: Quote) and other oil shares dropped after
running up in a five-day market rally.
 The resource-rich index was also hit by declining
gold-mining stocks as the price of gold XAU= [GOL/]
softened.
 Canadian Natural led all decliners, falling 2.1 percent to
C$70.57, while Suncor was off 1 percent at C$36.96. Oil company
EnCana (ECA.TO: Quote) weakened 1.1 percent to C$62.05. These three
stocks made up the biggest drags on the index even though the
price of oil  CLc1 popped over $80 a barrel.
 Key decliners also included fertilizer producer Potash
Corp, which lost 1.2 percent to C$104.27, and Goldcorp (G.TO: Quote),
down 0.3 percent at C$46.38.
 At 10:27 a.m. (1527 GMT), the S&P/TSX composite index
.GSPTSE was down 24.65 points, or 0.21 percent, at 11,462.23,
slightly off the two-week high hit in the previous session.
 "It's so natural that after five rally days you're going
have bit of a breather, so I wouldn't be surprised if we see
some pressure today and some profit-taking," said Paul Gardner,
partner and portfolio manager at Avenue Investment Management.
 Positive quarterly reports from Britain's top two banks,
HSBC (HSBA.L: Quote) and Barclays (BARC.L: Quote), limited declines in the
index's weighty banking sector and partly offset the
resources-led fall.
 The British banks signaled bad debts may be past their
peak, with HSBC declaring the first drop in U.S. consumer
finance impairments in three years. For more see
[ID:nLA635993].
 Royal Bank of Canada (RY.TO: Quote) was among top gainers, rising
0.6 percent to C$56.80, after UBS raised its rating on the
country's biggest bank to "buy" from "neutral".
 Cossette Inc KOS.TO, Canada's largest home-grown
advertising agency, rose 33 percent to C$7.78. It said it will
sell itself to private eqyity firm Mill Road Capital, spurning
a bid from Cosmos Capital. [ID:nN10304881]
 ($1=$1.05 Canadian)
 (Editing by Peter Galloway)