CANADA STOCKS-TSX slides in gold exit, German curb spooks market

Wed May 19, 2010 11:08am EDT
 
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* 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: Quote) shed 3.5 percent to C$18.17, while Goldcorp (G.TO: Quote) lost 3 percent to C$44.70. Agnico Eagle (AEM.TO: Quote) 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.   Continued...