CANADA STOCKS-TSX ends flat as gold, Greece downgrade weigh

Mon Jun 14, 2010 4:51pm EDT
 
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* TSX up 0.42 of a point at 11,667.34

* Energy, metals, banks up; gold stocks down (Updates to close)

By Claire Sibonney

TORONTO, June 14 (Reuters) - Toronto's main stock index ended flat on Monday as gold shares retreated, while a debt downgrade of Greece offset investor confidence in the global economic recovery after robust European industrial data.

Moody's Investors Service downgraded Greece's credit rating by four notches after midday, placing it into junk status. [ID:nN14207740]

"It probably shouldn't be a surprise because I think Greek bonds were already trading at junk levels anyway but that's a pretty big downgrade," said Barry Schwartz, vice-president and portfolio manager at Baskin Financial Services.

"The market was feeling good at the end of the week and kind of forgot about the European issues, and whoops, we got a sharp reminder again today."

Gold prices ended lower despite a late rebound to above $1,220 on the renewed risk aversion. [GOL/]

Still, gold stocks slumped 2.3 percent with Barrick Gold Corp (ABX.TO: Quote) down 2.8 percent at C$43.20 and Agnico Eagle (AEM.TO: Quote) off 2.2 percent at C$60.91.   Continued...