CANADA STOCKS-TSX retreats from Fed rally to close lower

Wed Sep 23, 2009 5:01pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX falls 68.19 points to 11,517.54
 * Energy shares headline pullback
 * Gives up earlier, post-Fed gains
 (Adds details)
 By Frank Pingue
 TORONTO, Sept 23 (Reuters) - Toronto's main stock index
ended lower on Wednesday as falling commodity prices rattled
the resource-heavy market and ate away at gains made after the
Federal Reserve said the U.S. economy was recovering.
 Shares of Suncor Energy (SU.TO: Quote), the biggest drag on the
index, fell 3 percent to C$38.20, followed by Canadian Natural
Resources (CNQ.TO: Quote), which ended down 2 percent at C$74.97.
 The index's energy sector closed 1.35 percent lower, a move
attributed to a drop in oil prices of nearly 4 percent after
U.S. data showed a big jump in crude and products stockpiles.
[O/R]
 The S&P/TSX composite index .GSPTSE closed down 68.19
points, or 0.59 percent, at 11,517.54.
 Earlier, the index touched a session high of 11,648.55,
notching a gain of 62.82 points, after the Federal Reserve
upgraded its assessment of the U.S. economy. [ID:nN23390829].
 But the Fed rally fizzled and the TSX eventually fell into
negative territory and was unable to recovery.
 "It looks like a classic case of buy the rumor and sell the
fact," said Francis Campeau, a broker at MF Global Canada, in
Montreal.
 "If you read the headlines, the headlines were bullish and
the market reaction was 180 degrees from what came out,"
Campeau said.
 The materials group, home to gold miners, stumbled to close
down 1.7 percent as a delayed rally in the U.S. dollar after
the Fed statement weighed on gold prices and dampened the
metal's status as a hedge against the greenback. [GOL/]
 Barrick Gold Corp (ABX.TO: Quote) shares dropped 2.5 percent to
C$39.23, while Goldcorp (G.TO: Quote) shed 2.4 percent to C$43.72.
 Around mid-afternoon, the heavily weighted financials group
was up about 1 percent and was holding the TSX index in
positive territory. But the gain vanished in the session's last
hour.
 Six of the TSX's 10 sectors ended lower.
 The information technology group led all sectors higher
with a 2 percent gain, a move driven by shares of Research In
Motion RIM.TO, which is expected to forecast strong gains
when it reports quarterly results on Thursday. [ID:nN22344504]
 Shares of RIM rallied 1.75 percent to C$92.41.
 (Reporting by Frank Pingue; editing by Peter Galloway)