June 28, 2010 / 2:45 PM / 7 years ago

CANADA STOCKS-TSX drops with oil prices; G20 fails to excite

 * TSX down 21.98 points at 11,685.87
 * Energy sector leads TSX lower
 * G20 summit fails to lift market  (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, June 28 (Reuters) - Toronto’s main stock index fell on Monday morning, tugged lower by weak energy issues as the market shrugged off the weekend G20 summit, which was widely panned as being lackluster.
 Big stocks falling included Toronto-Dominion Bank (TD.TO), down 0.4 percent at C$71.02, Suncor Energy Inc (SU.TO), down 0.3 percent at C$33.15, and Canadian Natural Resources (CNQ.TO), which fell 1 percent to C$36.38. Potash Corp of Saskatchewan (POT.TO) fell 0.6 percent to C$97.68.
 World leaders meeting in Toronto abandoned the idea of a global bank levy and eased the timetable for new bank capital requirements, leaving questions about the forum’s effectiveness. [ID:nLDE65R0I7] For more G20 news, please see: [ID:nN18322198]
 Analysts said that while targets for debt and deficit ratios in the G20 communique were mildly positive for the market, they were skeptical about implementation and warned that markets are focused on broader issues right now. [ID:nN27235152]
  “I don’t think anyone was expecting to have a G20 and come in and have the market rally 400-500 points. The fact they addressed some major issues was certainly positive,” said Bruce Latimer, trader at Dundee Securities.
 “The proof will be in the pudding down the road.”
 At 10:16 a.m. (1416 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 21.98 points, or 0.19 percent, at 11,685.87. It had opened up 11.05 points.
 Oil prices fell below $78 a barrel as concern eased about the impact on supply of tropical storm Alex in the Gulf of Mexico. That helped pull down Toronto energy issues by 1 percent. [O/R]
 Gold and base metals prices were largely firmer, with gold-mining shares higher but base-metals shares weaker. [GOL/] [MET/L]
 Latimer said there seemed to be little conviction to move the market in either direction. “I don’t see a lot of selling; I don’t a lot of buying,” he said.
 Eight of the index’s 10 main groups were lower. Materials, were up 0.6 percent, while the smaller utilities group was up 0.02 percent.
 ($1=$1.04 Canadian)  (Reporting by Jennifer Kwan; editing by Peter Galloway)                                       

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