* TSX falls 87.38 points to 10,307.40
* Erases early 166-point surge
* Energy shares lead turnaround (Adds details, comments and official numbers)
By Frank Pingue
TORONTO, June 16 (Reuters) - Toronto’s main stock index closed lower on Tuesday despite a solid start to the day as investors continued to pocket gains from the index’s remarkable 40 percent rally from the five-year low it hit in March.
Energy companies led the TSX index’s selloff, its third straight, as concerns about the strength of the economic recovery sent oil prices further from the near eight-month high above $73 a barrel they reached last week. [ID:nN16279408]
Suncor Energy (SU.TO) shares slid 3.4 percent to C$36.18, while EnCana Corp (ECA.TO), North America’s largest natural gas producer, dropped 2.2 percent to C$58.99. Both companies were among the biggest drags on the TSX index.
Eight of the TSX index’s 10 sectors ended lower, with the energy group’s 2.4 percent fall the biggest.
The TSX rallied at the open, rising 166 points, or 1.6 percent, before steadily relinquishing the gains and sputtering to its lowest close since June 3.
Still, the lower close did not generate much concern from investors since it was just last week that the TSX had rallied to 10,726.01, which was 43 percent above the five-year low it reached in March.
“Just recognition probably by some investors out there that we’ve had a pretty darn good run,” said Gareth Watson, Canadian Equity Advisor at ScotiaMcLeod. “The pause is also recognition that market momentum is potentially going to slow down a bit.”
The S&P/TSX composite index .GSPTSE closed 87.38 points, or 0.84 percent, lower at 10,307.40. The index is already down 3 percent this week after rallying for four straight weeks.
$1=$1.13 Canadian Editing by Peter Galloway