CANADA STOCKS-TSX dives as commodities get hit hard

Tue Apr 12, 2011 4:51pm EDT
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 * TSX ends down 195.46 points, or 1.4 pct, at 13,801.40
 * Eight of 10 main sectors weaker
 * Oil, gold, base metals all tumble
 (Updates to close, adds details, comments)
  By Claire Sibonney
  TORONTO, April 12 (Reuters) - Toronto's main stock index
closed sharply lower for a second day on Tuesday, hitting its
weakest point in nearly four weeks, as energy and mining shares
were battered by a broad commodities selloff.
  Energy shares led the way down, dropping 3 percent, as
U.S. crude oil futures fell more than $3 a barrel to around
$106 a barrel. Oil was hit hard after the International Energy
Agency warned high prices could crimp demand and Goldman Sachs
said Brent oil, the market price leader, could drop in coming
months. [O/R] [ID:nN12116926]
  Suncor Energy (SU.TO: Quote) slid 3.4 percent to C$42.05,
Canadian Natural Resources (CNQ.TO: Quote) shed 2.7 percent to
C$44.34, and Canadian Oil Sands Trust COS.TO sank 4.3 percent
to C$31.02. [O/R]
 "Some of the speculative froth may be coming out," said
Craig Wright, Royal Bank of Canada's chief economist. "But
there is still a lot of liquidity sloshing around the system
and it's still looking for yield."
 Wright said that if global growth moderates, then that
should translate into more stable commodity prices and take
some of the speculative pressure off commodities.
 Base-metal miners pulled back 2.9 percent on the back of
weaker copper prices as Japan raised the severity of the
Fukushima nuclear disaster to the highest level, equal to that
of the Chernobyl. [MET/L] [ID:nL3E7FB2TZ]
 Teck Resources TCKb.TO tumbled 3.6 percent to C$51.87,
while First Quantum Minerals (FM.TO: Quote) dropped 4.7 percent to
  The index's overall materials sector was down 1.7 percent
and was also hit by disappointment over aluminum-maker Alcoa's
(AA.N: Quote) results, with its revenue missing forecasts.
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 195.46 points, or 1.4 percent, at
13,801.40, hitting its worst level since March 17.
 Eight of the TSX's 10 main sectors were lower, including
financials, which fell nearly 1 percent. The gold sub-sector
lost 0.7 percent as the oil-price retreat continued to dim some
of gold's safe-haven attraction. [GOL/]
 ($1=$0.96 Canadian)
 (Additional reporting by Scott Haggett in Calgary; editing by
Peter Galloway)