CANADA STOCKS-Oils and golds not enough as TSX ends lower

Tue Oct 13, 2009 5:22pm EDT
 
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 * TSX ends down 0.2 percent at 11,413.54
 * U.S. downgrade of Goldman Sachs hurts banks, insurers
 * Rising commodities prices support oil, materials groups
 (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 13 (Reuters) - Toronto's main stock index fell
slightly on Tuesday as strength in commodity prices was not
enough to offset a drop in banking shares, which, led lower by
Royal Bank of Canada (RY.TO: Quote), mirrored weakness in U.S.
financial issues.
 Without much Canadian news to influence the market,
investors were discomforted by a downgrade on Goldman Sachs
Group (GS.N: Quote) to "neutral" from "buy". [ID:nBNG167833]
 Financials, which make up about a third of the index's
weighting, fell 1.6 percent, with all five of Canada's biggest
banks and two of its largest insurers among the top 11 most
notable decliners.
 Royal, Canada's biggest bank, topped all decliners, falling
1.5 percent to C$55.13, followed by Toronto-Dominion Bank
(TD.TO: Quote), down 1.8 percent at C$64.64. Insurer Manulife (MFC.TO: Quote)
lost 2 percent to C$22.08.
 The oil and gas and materials groups, which together
account for more than 40 percent of the index's weighting, were
well supported by a record high gold price and a fourth
straight session of higher oil prices. [GOL/] [O/R]
 Suncor Energy (SU.TO: Quote) was the top heavyweight advancer, up
2.9 percent to C$38.70. Many of the oil and gas group's biggest
names were not far behind Suncor, including Canadian Natural
Resources (CNQ.TO: Quote), up 2.7 percent at C$74.95, and Canadian Oil
Sands Trust COS_u.TO, up 4.1 percent at C$33.70.
 Most gold-mining shares were also higher, including Yamana
(YRI.TO: Quote), up 3.7 percent at C$13.09.
 "Oil and gold are not enough to hold the whole index and
financials just slowed things down," said Francis Campeau,
broker at MF Global Canada, in Montreal.
 The S&P/TSX composite index .GSPTSE closed 23.38 points
lower, or 0.2 percent, at 11,413.54.
 Concern about a heavy slate of upcoming U.S. earnings
reports also persuaded some investors to pocket profits after
the index's 4.4 percent gain last week.
 Some active issues on Tuesday included Arise Technologies
APV.TO, which soared by a fifth after the tiny Canadian solar
energy company announced a deal giving it another source of
solar panels for the big German market and a financial boost to
help develop its technology. Arise ended up 20.55 percent at
C$0.44. [ID:nN13178520]
 Detour Gold (DGC.TO: Quote) rose 10.8 percent to close at C$16.10
after the small Canadian gold explorer said it has signed an
interim agreement with an aboriginal group as part of
negotiations regarding the company's gold project in
northeastern Ontario. [ID:nN13206114]
 ($1=$1.03 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)