CANADA STOCKS-TSX dragged lower, commodities lead retreat

Mon Jun 22, 2009 5:13pm EDT
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* TSX plunges 453.77 points to 9,834.18

* Energy and materials lead selloff

* Lowest close since May 15 (Adds details)

By Frank Pingue

TORONTO, June 22 (Reuters) - Toronto's main stock index sank more than 4 percent on Monday to its lowest level in more than a month as falling commodity prices hit the resource-heavy TSX just after investors had thought the worst was over.

Concerns about an economic rebound weighed on oil prices and sent energy shares lower, while gold-mining issues tumbled as the price of gold hit its lowest level since May.

Suncor Energy (SU.TO: Quote) fell 8.6 percent to C$32.19, while EnCana Corp (ECA.TO: Quote) fell 5.7 percent to C$54.66.

The TSX's retreat, the biggest point-fall since Dec. 1, was considered a pullback after the index had rallied considerably from the five-year low it hit in March. At one point in June it was up 43 percent from the March low.

"Some people might be locking in some of the profits that they made over the last three months," said Bruce Latimer, a trader at Dundee Securities. "It was selling right across the board and they didn't even try to rally the market at all, so we might be in for a few more days of this."   Continued...