CANADA STOCKS-TSX falls over 1 pct on soft commodity prices

Mon Oct 26, 2009 4:58pm EDT
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 * TSX ends down 147.25 points at 11,234.88.
 * Strong U.S. dollar undermines commodity prices
 (Adds details, official closing numbers, analyst's quotes)
 By John McCrank
 TORONTO, Oct 26 (Reuters) - Toronto's main stock index shed
more than 1 percent on Monday as commodity prices were undercut
by a rally in the U.S. dollar, sending energy and mining shares
 The index had been up as much as 143 points early in the
session, but then swung the other way as weighty energy and
mining stocks started to slide.
 Suncor Energy SU.TO was the biggest drag on the index,
with its shares ending down 2 percent at C$37.61, followed by
Barrick Gold ABX.TO, which fell 2.5 percent to C$38.60.
 The S&P/TSX composite index .GSPTSE closed down 147.25
points, or 1.29 percent, at 11,234.88.
 "We saw today a big reversal in the U.S. dollar," said
Elvis Picardo, analyst and strategist at Global Securities in
 "It's moved sharply higher and that's hit commodity prices,
and by extension the stock prices of the commodity producers."
 Picardo said that since most commodities are priced in U.S.
dollars, when the dollar goes up, those prices become more
expensive for those using other currencies, weakening demand.
 U.S. crude prices settled at $78.68 a barrel, down 2.26
percent, while the price of gold hit its lowest level in more
than two weeks, under $1,040 an ounce.
 Once the market began to give back its early gains, traders
took the opportunity to pocket some profits after the market's
strong run from the past couple of weeks, said Bruce Latimer, a
trader at Dundee Securities.
 Financials had a strong start, helped by a share-price
target hike on all of Canada's Big Five banks by Genuity
Capital.[RCH/CA] But they also reversed course to finish in the
 Royal Bank of Canada RY.TO shares dropped 0.8 percent to
C$55.66, while Bank of Nova Scotia BNS.TO shares fell 1
percent to C$45.86.
 CI Financial CIX.TO managed to buck the trend in
financials, ending 0.8 percent higher at C$19.85 after it said
it reached an agreement to sell Blackmont Capital Inc to
Australia's Macqurie Group for C$93.3 million. [ID:nN26119860]
 Industrial equipment supplier Toromont Industries TIH.TO
reported lower earnings, but they still beat estimates. Its
revenues came in below expectations and the company said its
results would be depressed for the current quarter as well.
[ID:nN26186186] The company's shares ended down 0.9 Canadian
cents at C$24.80.
 ($1=$1.07 Canadian)
 (Reporting by John McCrank; editing by Peter Galloway)