CANADA STOCKS-TSX hit by commodities, U.S. data, earnings

Tue Jul 28, 2009 4:30pm EDT
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 * TSX drops 1.74 percent to 10,570.54
 * Materials sector leads selloff
 * Weak U.S. earnings, consumer confidence data hit market
 (Adds details and comments. Updates closing numbers)
 By Ka Yan Ng
 TORONTO, July 28 (Reuters) - Toronto's main stock index
fell hard on Tuesday as sharply lower commodity prices and weak
U.S. consumer confidence prompted profit-taking after a big
run-up in the index.
 Disappointing quarterly corporate results in the United
States also convinced investors to pocket some of the market's
sharp recent gains.
 The slide was headed by the index's mining-laden materials
group, which fell 3.5 percent on a drop in gold prices. The
energy group dropped 1.92 percent as the price of oil fell.
 Shares of miner Goldcorp G.TO, the biggest drag on the
index, were off 5.92 percent at C$39.11, while Barrick Gold
Corp ABX.TO was down 4.2 percent at C$36.21. Kinross K.TO
was also a heavy loser, down 6.2 percent at C$20.55.
 "Commodities certainly are driving it today, and financials
are also in the game," said Adrian Mastracci, portfolio manager
and president of KCM Wealth Management Inc in Vancouver.
 "Today we got a little bit of profit-taking but it's also
not too terribly surprising. We've had a long run now. It does
point to the fact that some investors are being a little
cautious, and rightly so."
 The S&P/TSX composite index .GSPTSE closed down 186.89
points, or 1.74 percent, at 10,570.54. Nine of its 10 main
groups were lower, including the hefty financials, which fell
1.3 percent.
 The selloff came after Viacom Inc VIAb.N and Office Depot
Inc ODP.N both delivered disappointing quarterly results and
spurred investors to seek more evidence of economic rebound.
 Meanwhile, conflicting U.S. data showed U.S. home prices
rose in May for the first time in three years, but a weakening
job market hit consumer confidence in July and could prevent
near-term economic recovery. [ID:nN28406937]
 ($1=$1.08 Canadian)
 (Editing by Peter Galloway)