July 21, 2009 / 6:27 PM / 8 years ago

CANADA STOCKS-TSX pulled down as commodities pull back

* TSX down 0.87 percent at 10,448.28

* Materials group drops 1.99 percent

* Energy sector down 1.17 percent (Adds details, quotes)

TORONTO, July 21 (Reuters) - Toronto’s main stock index fell 1 percent on Tuesday afternoon after six straight days of gains, weighed down by the mining-heavy materials sector.

The materials group dropped 1.99 percent, undercut as gold prices fell back from the day’s highs. Barrick Gold (ABX.TO) was down 1.32 percent at C$38.88, and Goldcorp (G.TO) fell 2.17 percent to C$41.12.

The energy sector retreated 1.17 percent as the price of oil fell to around $63 a barrel. Canadian Natural Resources (CNQ.TO) was down 3.96 percent at C$62.62, Imperial Oil (IMO.TO) fell 1.33 percent to C$42.96, and EnCana (ECA.TO) dropped 0.31 percent to C$58.

“Some of the commodity prices are sliding from their highs of this morning,” said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc in Vancouver.

“That market confidence is just not there yet. I think people are sliding back a little bit, saying we should be a little bit more cautious about the outlook here.”

At 1:55 p.m. (1755 GMT) the S&P/TSX composite index .GSPTSE was down 91.43 points, or 0.87 percent, at 10,448.28 after gaining as much as 57 points early in the day. Six of its 10 main groups were lower.

“There may be a bit of hesitation in going gung-ho, saying yes we are out of the economic difficulties that we had and we can now proceed ahead,” Mastracci said.

The Bank of Canada held its key interest rate at 0.25 percent on Tuesday, as expected, and gave a rosier economic forecast, while softening its language on the impact on exports of a strong Canadian dollar. [ID:nBAC000314]

“The rate decision is that our rates are already at very low levels. It’s not going to have an impact on the market,” said John Ing, president of Maison Placements Canada.

$1=$1.11 Canadian Reporting by Nina Lex; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below