CANADA STOCKS-TSX tumbles on pullback in commodities

Mon Apr 11, 2011 4:39pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

   * Ends down 211.57 points, or 1.5 pct, at 13,996.86
 * Nine of 10 main sectors weaker
 * Oil, gold, copper prices fall
 (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, April 11 (Reuters) - Toronto's main stock index
closed sharply lower on Monday, falling more than 200 points in
a broad decline led by weaker energy and materials issues, as
commodity prices retreated from recent highs.
 Gold miners skidded 2.7 percent after bullion eased from a
record high hit earlier in the day as a $3 drop in oil prices
dimmed some of gold's safe-haven attraction. [GOL/]
 Barrick Gold Corp (ABX.TO: Quote) shed 2.7 percent to C$50.66,
Goldcorp Inc (G.TO: Quote) skidded 2.1 percent to C$51.06 and Agnico
Eagle (AEM.TO: Quote) slid 1.8 percent to C$62.67.
 Energy shares were down 2.6 percent as U.S. crude fell
below $110 a barrel on prospects of a Libyan peace deal. [O/R]
 "It's been the energy and materials sectors that have done
the damage and that's mirrored the pretty sharp pullback in
crude oil and the pullback in spot gold," said Fergal Smith,
managing market strategist at Action Economics.
 Suncor Energy (SU.TO: Quote) retreated 2.6 percent to C$43.51,
Canadian Natural Resources (CNQ.TO: Quote) plunged 3.6 percent to
C$45.56 and Imperial Oil (IMO.TO: Quote) sank 3.1 percent to
 "Going back over the last week I've heard  so many
predictions that crude oil was on its way to $120 and I just
don't see that short term," said John Kurgan, senior market
strategist at commodity futures brokerage Lind-Waldock Canada.
 "Maybe longer term it's going to work its way back up
there, but I think a lot of the funds that were pushing this
thing higher are probably taking some profits here."
  Base metal miners also tumbled, falling 2.1 percent as
copper pulled back from five-week highs on news of another
strong earthquake in Japan. [MET/L]
 Teck Resources TCKb.TO was down almost 2 percent to
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 211.57 points, or 1.49 percent, at
13,996.86. Nine of its 10 main sectors were lower, including
financials, down 0.6 percent. Consumer staples rose 0.1
A late-afternoon slide of nearly 2 percent to 13,933.06
pushed the TSX below significant support at the 50-day moving
average just below 14,000, but the index managed to rebound
slightly. The next support level in play, said Smith, is the
March 29 low around 13,800.
 Bucking the trend, TimberWest Forest Corp TWF_u.TO soared
19 percent to C$6.46 after two pension funds reached an
agreement to buy the timber and land management company valued
at C$1.03 billion, including debt. [ID:nL3E7FB24]
 Investors were also cautiously awaiting the start of U.S.
earnings season with Alcoa reporting after the bell. The Bank
of Canada will make a policy announcement on Tuesday but is
expected to hold interest rates steady.
 ($1=$0.96 Canadian)
 (Reporting by Claire Sibonney)