CANADA STOCKS-TSX snaps 8-day rally as resources, banks sag

Mon Feb 22, 2010 4:40pm EST
 
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* TSX falls 0.64 percent to 11,634.75

* Gold price slips from month high (Adds details, comments, updates closing numbers)

By Ka Yan Ng

TORONTO, Feb 22 (Reuters) - Toronto's main stock index closed lower on Monday, snapping an eight-day stretch of gains, dragged down by weakness in resources and financials.

Gold stocks were among the falling issues on Monday as the price of bullion retreated from one-month highs. Barrick Gold ABX.TO was off 2.27 percent at C$40.07 to lead all influential decliners. Goldcorp G.TO skidded 1.54 percent to C$39.70.

Most bank stocks were also lower ahead of this week's start of the quarterly results season. Some were among the top heavyweight decliners, including Royal Bank of Canada RY.TO, down 0.86 percent at C$56.60, and Bank of Nova Scotia BNS.TO, down 0.65 percent at C$47.49.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 74.54 points, or 0.64 percent, at 11,634.75. Six of the index's 10 main groups were lower.

Some profit-taking was overdue, market players said, as the quarter's crop of company results was fairly healthy.

Market players were also still assessing the implications of the Federal Reserve's move to hike its discount rate last week, which raised speculation that the U.S. central bank might raise its key fed funds rate earlier than expected. Greece's unresolved debt woes also remained on investors' radar.

"I think we're going to pause here for a while. Earnings have been good. We had a bit of a jolt in terms of the discount rate hike so interest rates are still a bit of a concern," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. "But the tone is healthy."

($1=$1.04 Canadian) (Reporting by Ka Yan Ng; editing by Rob Wilson)