CANADA STOCKS-TSX ends lower as oil, gold prices fall

Mon Jan 19, 2009 5:03pm EST
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* Energy, golds lead TSX drop as resource prices fall

* Financials pressured by British bank bailout (Adds details, official numbers, analyst's comments)

By Natalie Armstrong

TORONTO, Jan 19 (Reuters) - Toronto's main stock index closed moderately lower on Monday as weakness in commodity prices pulled down energy and gold-mining issues.

As well, continuing concerns about the health of the banking industry weighed down the index's financials group.

The energy sector fell 2.02 percent as the price of oil lost more than $2 to end at $34 a barrel on Monday after Russia and Ukraine ended a dispute over gas supplies and a cease-fire took hold in Gaza.

Suncor Energy (SU.TO: Quote), fell 4.4 percent to C$26.26, and EnCana Corp (ECA.TO: Quote) dropped 1.8 percent to C$55.72.

"You're seeing less of a war threat in the oil price right now and it's back to the fundamentals of the business, which is supply and demand," said Brian Pow, vice president, research and equity analyst at Acumen Capital Partners, in Calgary, Alberta.

"With recession or potential recession in the U.S., demand will probably continue to fall, which means it's just going to push prices down."   Continued...