CANADA STOCKS-TSX tumbles on commodities, U.S. housing data

Tue Jun 22, 2010 4:36pm EDT
 
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 *TSX down 138.14 points, or 1.2 percent, at 11,797.94
 *Nine of index's 10 main groups lower
 *Biovail continues to rally, up 13 percent
 (Updates to close)
 By Claire Sibonney
 TORONTO, June 22 (Reuters) - Toronto's resource-heavy main
stock index tumbled on Tuesday, pushed lower by weak commodity
prices and a surprise drop in U.S. home sales.
 The index's energy sector fell 2.3 percent as Suncor Energy
SU.TO dropped 2.4 percent to C$33.73, and Encana Corp
ECA.TO lost 3.1 percent to C$34.16.
 Base-metal miners knocked off 3.2 percent as Teck Resources
TCKb.TO shed 3 percent at C$35.57 and First Quantum Minerals
FM.TO fell 3.1 percent to C$62.60.
 The hefty drop in resource-linked shares followed a decline
in oil and base metals prices as expectations grew that a slow
rise in China's yuan would have a more limited impact on demand
than initially anticipated. [O/R] [MET/L]
 "Softer prices are a natural sort of corollary to concerns
about slowing global growth," said Elvis Picardo, analyst and
strategist at Global Securities in Vancouver.
 "China's announcement caused some extremely short-term
optimism and a flurry of buying but I guess investors
reassessed the implications of that move."
 As well, U.S. data that showed existing home sales fell in
May raised doubts about the pace of economic recovery.
[ID:nN22382886]
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 138.14 points, or 1.16 percent, at
11,797.94, with nine of its 10 main sectors weaker.
 Healthcare shares gained 3.3 percent as drugmaker Biovail
Corp BVF.TO rallied 13.1 percent to C$19.25.
 The company said on Monday it would take over U.S-based
Valeant Pharmaceuticals International VRX.N in a complex deal
that the companies said would position them better to serve the
growing baby boomer market. [ID:nSGE65K07S]
 ($1=$1.03 Canadian)
 (Editing by Mario Di Simine)