December 29, 2009 / 3:52 PM / 8 years ago

CANADA STOCKS-TSX falls as lower bullion hits golds

 * TSX falls 0.26 percent to 11,724.02
 * Golds lead fall, five miners among biggest decliners  (Adds details)
 TORONTO, Dec 29 (Reuters) - Toronto’s main stock index fell on Tuesday morning with its materials sector leading the decline as gold miners followed the price of bullion lower.
 After a four-day pause in trading for the holidays, the S&P/TSX composite index .GSPTSE failed to follow the trend of a global stock market rally, and instead took a hit from the price of gold, which fell below $1,100 an ounce.
 Five gold miners were among the top 10 heavyweight decliners, led by a 3 percent drop in Goldcorp (G.TO) to C$41.45. Barrick Gold (ABX.TO) lost 1.7 percent to C$41.71, while Kinross (K.TO) shed 2.2 percent to C$19.30. Agnico Eagle(AEM.TO) and Yamana Gold (YRI.TO) were also among the top decliners.
 Before the break, the TSX had gained for four straight days on the back of encouraging economic data and strong oil.
 “We’re talking about a very light volume day,” said Francis Campeau, broker at MF Global Canada in Montreal.
 “We’ve been underperforming the S&P/500 for the last couple of weeks. We’ve seen U.S. markets trading year highs while we’re still below that. I think the Canadian market is still digesting the 10 percent selloff in gold.”
 Bullion tumbled to a seven-week low of $1,074.10 an ounce last week before the holiday break after hitting $1,215 earlier in the month.
 At 10:30 a.m. (1530 GMT), the S&P/TSX composite was off 30.59 points, or 0.26 percent, at 11,724.02. Eight of the index’s 10 main sectors were lower, led by a 1.5 percent decline in its materials group.
 The energy group was a bright spot as the price of oil moved towards $79 a barrel. Canadian Natural Resources (CNQ.TO) led heavyweight advancers with a 0.8 percent gain to C$75.22.
 U.S. consumer confidence improved more than expected in December, but house prices were flat in October after five months of increases, though neither set of data prompted much reaction in stocks.  [ID:nN29360734] [ID:nN29144421]
 The Toronto stock market was last open on Dec. 24 and volume is expected to be light for this week’s three trading days as many market players take holidays between Christmas and New Year‘s.
 ($1=$1.04 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)   

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