4 Min Read
* TSX down 140.12 points, or 1.03 percent, at 13,501.94
* All 10 index groups lower (Updates with details, comments)
By Solarina Ho
TORONTO, May 11 (Reuters) - Toronto's main stock index was broadly lower on Wednesday morning as Chinese inflation data that suggested the world's second-largest economy might be cooling pushed down commodity prices.
Inflation in China eased in April from a 32-month high and pushed down oil, gold and metal prices. Figures on Wednesday also showed showed that China's industrial output growth was more than a full percentage point below expectations in April after a strong showing in March. [ID:nL3E7GB0H2]
Toronto's oil and gas stocks, which have fallen more than 6 percent over the past week, were down 2.1 percent on Wednesday. Suncor Energy (SU.TO) led the blue-chip decliners with a 2.41 percent retreat to C$39.60. It was followed by Canadian Natural Resources (CNQ.TO), which fell 2.2 percent to C$40.44.
The index's materials group, where mining companies are grouped, fell 1.83 percent, partly weighed down by a 3.45 percent drop to C$46.47 in shares of diversified miner Teck Resources TCKb.TO. Barrick Gold was down 2.22 percent at C$44.58, while fellow gold miner Agnico Eagle (AEM.TO) was down 1.06 percent at C$60.53.
"As the market has been in the last while, it's really been over-reactive both on the up and the down side to those positive and negative news," said Michael Sprung, president at Sprung & Co. Investment Counsel.
"Overall, we've got a combination of some disappointing earnings, commodity declines, some economic data that's troubling."
At 10:45 (1445 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 140.12 points, or 1.03 percent, at 13,501.94. All 10 of its main groups were lower.
"We're heading into the summer months, so it's not atypical to see people building cash positions prior to the summer. So we've got a little bit of a seasonal effect beginning to happen as well," Sprung said.
"It's been our view for some time the market's been ahead of fundamentals. We've seen recently the start of what could be a more pronounced correction and going into the summer time, I wouldn't be surprised to see more downward pressure on the market."
Ivanhoe Energy IE.TO dropped 4.86 percent to C$2.35 after the oil producer reported a bigger quarterly loss on Wednesday. [ID:nL3E7GB2QV]
Fertilizer maker Agrium (AGU.TO), which completed the sale of the majority of the commodity management businesses of Australia's AWB to Cargill Inc for $677 million, fell 1.67 percent to C$79.02. [ID:nN11183367]
Brookfield Asset Management (BAMa.TO) fell 1.73 percent to C$31.84 despite reporting a higher profit on Wednesday. [ID:nN11187078]
Boralex (BLX.TO) shares bucked the downward trend, climbing 3.73 percent to C$8.90 after the power producer reported first-quarter profit that rose nearly four-fold. [ID:nL3E7GB2DW]