CANADA STOCKS-TSX drops with oil, gold prices

Mon Jun 28, 2010 3:02pm EDT
 
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 * TSX down 74.64 points at 11,633.21.
 * Weak gold prices help TSX extend losses
 * G20 summit fails to lift market
 (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, June 28 (Reuters) - Toronto's main stock index
extended losses on Monday afternoon on weaker commodity prices,
with the move lower accelerated by a steep drop in bullion.
 Banks also fell even as Group of 20 leaders at a Toronto
summit agreed to give banks more time to adopt tougher global
rules. [ID:nN27241260]
 Big stocks falling included Royal Bank of Canada RY.TO,
the country's largest lender, down 0.7 percent at C$52.66, and
Toronto-Dominion Bank TD.TO, down 0.7 percent at C$70.78,
Suncor Energy Inc SU.TO fell 0.6 percent to C$33.04, while
Barrick Gold ABX.TO dropped 0.2 percent to C$47.98.
 "I think the biggest movement today was a strong reversal
in the precious metal sector," said Francis Campeau, broker at
MF Global Canada in Montreal.
 Gold retreated 1 percent on a sharp technical sell-off and
dwindling safe-haven buying. The decline helped drag down
materials by 1.1 percent. [GOL/]
 At 2:28 p.m. (1828 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 74.64 points, or
0.64 percent, at 11,633.21.
 Leaders of the Group of 20 rich and developing nations, who
met in Canada this weekend, agreed on Sunday to take different
paths towards assuring lasting growth and making their banking
systems safer, a reflection of the uneven and fragile economic
recovery in many countries.  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."
 As well, oil prices fell below $79 a barrel as concern
eased over how Tropical Storm Alex in the Gulf of Mexico would
affect crude supply. That helped pull down Toronto energy
issues by 1.4 percent. [O/R]
 Eight of the index's 10 main groups were lower.   
($1=$1.03 Canadian)
 (Additional reporting by Claire Sibonney; Editing by Frank
McGurty)