CANADA STOCKS-TSX sags on profit-taking after six-day rally

Tue Jul 21, 2009 5:20pm EDT
 
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* TSX ends down 0.24 percent at 10,515.32

* Materials group drops 1.18 percent

* Six-day rally spurs profit-taking (Adds details details, quote)

By John McCrank

TORONTO, July 21 (Reuters) - Toronto's main stock index finished lower in choppy trade on Tuesday as investors pocketed some profits after six straight days of gains and a weaker gold price weighed on the materials sector.

The mining-heavy materials group dropped 1.18 percent as gold prices slipped on anti-inflation comments by the U.S. Federal Reserve. [ID:nN21560088] Goldcorp (G.TO: Quote) fell 1.14 percent to C$41.55, while Barrick Gold (ABX.TO: Quote) ended down 0.53 percent at C$39.19.

The S&P/TSX composite index .GSPTSE closed down 25.39 points, or 0.24 percent, at 10,515.32 after gaining as much as 57 points early in the day. Five of its 10 main groups were lower.

"Probably some profit-taking, because we had a phenomenal rally in that last couple of weeks," Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd in Calgary, said of the retreat.

"The market is playing a big game of tug-of-war at the moment between how far it should run with a possible recovery, and have we come too far too soon."   Continued...