CANADA STOCKS-TSX weighed down by gold miners

Thu Apr 16, 2009 10:17am EDT
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* TSX down 25.27 points at 9,220.74

* Gold miners headline early skid (Adds details and comments)

By Frank Pingue

TORONTO, April 16 (Reuters) - Toronto's main stock index fell on Thursday morning as lower bullion prices pulled down shares of gold miners.

The index's materials sector dropped 2 percent on the gold miners' fall. The price of gold declined as a rally in European stocks and sluggish investment and physical demand dented the metal's appeal as an alternative investment. [ID:nTLG392725] .

Shares of Barrick Gold Corp (ABX.TO: Quote) were down 2.6 percent at C$35.04, while Goldcorp (G.TO: Quote) fell 2.4 percent to C$35.81.

The TSX entered the session nearly 24 percent above the five-year low it hit in early March, which some experts felt left it ripe for a pullback.

"The market has had a significant recovery over the past five weeks and you have to go back decades to have a similar type of move," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario.

"The economy is showing some signs of stabilization, but that being said, it still is pretty anemic and we are in the midst of the earnings period and there really isn't going to be a whole lot good news stories in the earnings."   Continued...