CANADA STOCKS-TSX falls as lower bullion hits golds

Tue Dec 29, 2009 10:51am EST
 
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 * 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: Quote) to
C$41.45. Barrick Gold (ABX.TO: Quote) lost 1.7 percent to C$41.71,
while Kinross (K.TO: Quote) shed 2.2 percent to C$19.30. Agnico
Eagle(AEM.TO: Quote) and Yamana Gold (YRI.TO: Quote) 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: Quote)
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)