CANADA STOCKS-TSX retreats from Fed rally to close lower

Wed Sep 23, 2009 4:36pm EDT
 
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 * TSX falls 68.19 points to 11,517.54
 * Energy shares headline pullback
 * Gives up earlier, post-Fed gains
 (Adds details, comments and official numbers)
 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 broader energy sector closed 1.35 percent lower, a move
credited 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.
 (Reporting by Frank Pingue; editing by Peter Galloway)