August 10, 2009 / 8:59 PM / 8 years ago

CANADA STOCKS-TSX tumbles on weaker gold, profit-taking

3 Min Read

* TSX down 91.66 points, or 0.84 percent, at 10,793.67

* Weak gold price pressures materials, down 1.4 pct

* RIM falls 4.7 percent after UBS downgrade (Adds details, quotes)

By Jennifer Kwan

TORONTO, Aug 10 (Reuters) - Toronto's main stock index closed lower on Monday as gold miners fell on weaker bullion prices and investors took profits after the index logged its fourth straight week of gains last week.

The decline was led by a 1.4 percent drop in the mining-heavy materials group, which came under pressure from the declining price of gold on technical selling and a resurgent U.S. dollar. [ID:nN10552665]

Goldcorp (G.TO) fell 2.6 percent to C$39.27, while Barrick Gold (ABX.TO) was down 1 percent at C$37.26, among the top heavyweight decliners.

"There is some softness in the gold market. With the U.S. dollar strong that usually hurts gold and gold producers, which of course hurts the TSX a little bit," said Paul Gardner, partner & portfolio manager at Avenue Investment Management.

The S&P/TSX composite index .GSPTSE was down 91.66 points, or 0.84 percent, at 10,793.67, with nine of its 10 main groups lower. Consumer staples was the lone sector in the black, up 0.13 percent.

The TSX notched its fourth straight weekly gain last week and headed into Monday's session, up about 45 percent from its March lows. Analysts said a breather for the market was due.

"It's really a down day across the board. Profit-taking could play a factor here," said Jennifer Radman, vice-president and associate portfolio manager at Caldwell Investment Ltd.

It's also a "slow summer day" and a selloff is overdue given the recent market rally, added Gardner.

"I wouldn't be surprised if there was continued pressure going into September," he said.

The energy sector fell 0.65 percent as the price of oil tracked losses in equity markets, settling 0.47 percent lower at $70.60 a barrel. [ID:nSP480396] Suncor Energy (SU.TO) sank 1 percent to C$35.98.

The financials group retreated 0.74 percent, weighed down by Royal Bank of Canada (RY.TO), which finished the day off 0.7 percent at C$50.71. Toronto-Dominion Bank (TD.TO) fell 1 percent to C$63.22.

Among individual names, Research In Motion RIM.TO fell 4.7 percent to C$79.70. Earlier, UBS downgraded the BlackBerry maker to "neutral" from "buy", and cut its Nasdaq price target to $88 from $90. [ID:nBNG342777]

Shares of Centerra Gold (CG.TO) fell 9.1 percent to C$6.51 on expectations that parent Cameco Corp (CCO.TO) could soon sell its 49 percent stake in the gold miner. Cameco finished the day down 0.3 percent at C$30.20. [ID:nN10322734]

The blue chip S&P/TSX 60 index .TSE60 closed 5.81 points lower, or 0.89 percent, at 649.90.

$1=$1.09 Canadian Reporting by Jennifer Kwan; editing by Rob Wilson

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