UPDATE 2-Toronto stocks retreat as profit-taking sets in

Tue May 13, 2008 4:42pm EDT
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(Updates closing numbers, adds details, quotes)

*Market retreats from Monday's record high

*Profit-taking hurts energy shares

*Rona falls after reports drop in profit

TORONTO, May 13 (Reuters) - The Toronto Stock Exchange's main index fell back from a record high on Tuesday, weakened by retreating oil and gas shares as investors took the opportunity to lock in profits.

The heavyweight energy sector eased 0.5 percent despite yet another record high for crude near $127 a barrel after Iran said it was studying a plan to cut oil output.

Husky Energy (HSE.TO: Quote) fell C$1.65, or 3.2 percent, to C$50.19, and Imperial Oil (IMO.TO: Quote) was down C$1.36, or 2.3 percent, at C$57.94.

"I think overall we're just really seeing a bit of a blowoff from yesterday," said Michael Sprung, president at Sprung & Co. Investment Counsel. "Our view would be that these highs aren't sustainable given the weakness in the underlying economy."

The S&P/TSX composite index .GSPTSE closed 49.37 points, or 0.34 percent, lower at 14,616.70 on Tuesday with six of its 10 main sectors falling. On Monday, the index hit a record high of 14,695.75.   Continued...