3 Min Read
* 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/]
"How much higher can gold go? And these gold stocks are not getting priced at $1,200, $1,250 gold anyway," said Schwartz.
"People are looking for sectors that probably have better torque if the economy isn't headed towards a double-dip and those areas would be oil and copper, better places to be in."
Oil and copper prices rallied after upbeat data on euro zone industrial output fed optimism about the global economy. [O/R] [MET/L]
The energy sector added 0.2 percent and base metal miners gained 1.2 percent. Imperial Oil (IMO.TO) edged up 0.1 percent to C$40.58 and Teck Resources TCKb.TO rose 1.1 percent to C$35.10.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended 0.42 of a point higher at 11,667.34.
$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Rob Wilson