CANADA STOCKS-Oil shares lead broad TSX retreat
* 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)
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