3 Min Read
* TSX drops 0.87 percent to 11,662.25
* Gold shares lead decline
* Bank shares a bright spot (Adds details)
By Ka Yan Ng
TORONTO, May 19 (Reuters) - Toronto's main stock index surrendered early gains on Wednesday, dragged down by soft gold shares and investor jitters over Germany's ban on some risky bets aimed at limiting speculative trading.
Gold fell below $1,200 an ounce as the metal was caught up in selling of equities and other commodities that was triggered by Germany's surprise move. [FRX/] [GOL/]
Shares of gold miners were among the steepest losers, dragging the materials group down more than 3 percent. Shares of Kinross Gold (K.TO) shed 3.5 percent to C$18.17, while Goldcorp (G.TO) lost 3 percent to C$44.70. Agnico Eagle (AEM.TO) dropped 3 percent to C$62.84.
Additional pressure came on the back of an unexpected fall last month in U.S. consumer prices, the first decline in a year. [ID:nN19219213]
"Gold stocks are weighing pretty heavy on the market. We saw a lower reading on the CPI data in the U.S. today," said Youssef Zohny, associate portfolio manager, Van Arbor Asset Management, in Vancouver, British Columbia.
"We've been seeing a few deflationary things out there. It doesn't bode well for gold."
At 10:50 a.m. (1450 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE tumbled 102.26 points, or 0.87 percent, to 11,662.25. It was briefly higher on strength in banking issues after a negative start, but turned lower on gold weakness to hit its lowest level since May 7.
Few sectors were spared in the broad decline, though the financials group maintained a positive position, up 0.26 percent.
Canadian Imperial Bank of Commerce (CM.TO) rose 2 percent to C$73.75, while Bank of Montreal (BMO.TO) gained 0.59 percent to C$60.98. Royal Bank of Canada (RY.TO) was up 0.5 percent at C$60.40. (Editing by Jeffrey Hodgson)