CANADA STOCKS-TSX erases gains in flight to safety

Fri May 13, 2011 2:14pm EDT
 
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 * TSX erases gains, down 0.3 percent, at 13,349.63
 * Index on track for 4th straight down day
 (Adds details)
 By Ka Yan Ng
 TORONTO, May 13 (Reuters) - Toronto's main stock index
reversed early gains and was lower on Friday afternoon as
commodity prices, notably oil and gold, dropped after data
showed U.S. inflation hit the highest level in 2-1/2 years.
 Commodity prices had been steady early in the day and
helped push up the market. But oil then tumbled and gold
dropped about 1 percent as the U.S. dollar rose on safe-haven
buying.
 At 1:45 p.m. (1745 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 39.79 points, or 0.3
percent, at 13,349.63, after falling for three straight days.
Eight of its 10 sectors were lower, with the financial group
down about 0.4 percent.
 Major U.S. stock indexes were down about 1 percent.
 "There's clearly some massive positions being closed. Risk
is being unwound," said Francis Campeau, broker at MF Global
Canada, in Montreal.
 "We're finishing the week similar to how it started."
 The energy sector was down 0.6 percent. Suncor Energy
(SU.TO: Quote), dropped 0.64 percent to C$38.63, while Canadian
Natural Resources (CNQ.TO: Quote) fell 0.9 percent to C$39.65. Nexen
NXY.TO slid 2.8 percent to C$21.60.
 ($1=$0.97 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)