CANADA STOCKS-TSX pressured as oil cools, gold loses luster

Mon Mar 28, 2011 11:05am EDT
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   * TSX down 27.96 points, or 0.2 percent, at 14,011.43
 * Seven of the index's 10 main groups lower
 * Oil and gas, mining lead declines; financials up
 (Updates with details, comments)
 By Solarina Ho
 TORONTO, March 28 (Reuters) - Toronto's main stock index
fell on Monday as commodity prices retreated from recent lofty
levels, driving energy and mining shares into negative
 The most influential decliners were all mining and energy
companies, which combine to make up roughly 50 percent of the
 Goldcorp G.TO dipped 0.77 percent to C$47.55, while
Agnico Eagle AEM.TO was down 1.61 percent at C$65.34. Suncor
Energy SU.TO was off 0.88 percent at C$43.73 and Nexen Inc
NXY.TO fell 1.31 percent to C$24.04.
 The materials sector, home to mining companies, was down
0.65 percent while oil and gas stocks were off 0.31 percent.
 Comments last Friday by Federal Reserve officials that the
central bank will have to raise interest rates in the
"not-too-distant future" to avoid inflation and easing worries
over unrest in the Middle East region pressured oil and gold
 Bullion fell more than 1 percent, briefly slipping below
$1,410 an ounce and crude oil prices were down about a
dollar.[GOL/] [ID:nLDE72O1T3] [O/R]
 "Energy prices -it's a double edged sword. Obviously oil
and gas companies benefit from higher energy prices, yet if the
price is too high, then it has a potential negative effect on
the economy as as whole," said Peter Chandler, senior
vice-president and director at Canaccord Wealth Management.
 "Given those constraints, the market's are not going to
move out of the trading range that it's in right now. We are
ending up with a market that's not up very much and not down
very much."
 At 10:23 a.m. (1523 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 27.96 points, or 0.2
percent, at 14,011.43. Seven of the index's 10 main groups were
in the red.
 Renewed worries about Japan's crisis also pinched copper
prices. The metal, used in construction and power, was down
roughly six percent since hitting a record high of $10,190 on
Feb. 15.
 Diversified miner Teck Resources TCKb.TO was down 1.29
 "The market is in a transitionary period here and trying to
digest all this uncertainty in news," said Chandler.
 Financials, which make up roughly a third of the index,
were among the lone gainers, rising 0.21 percent, and helped
cap some of the losses.
 Toronto Dominion Bank TD.TO was a lead advancer, rising
0.39 percent to C$84.78. National Bank of Canada NA.TO was up
1.1 percent at C$76.90.
 ($1=$0.98 Canadian)
 (Editing by Jeffrey Hodgson)