CANADA STOCKS-TSX drops on oil, gold prices, profit-taking

Fri Oct 30, 2009 10:39am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * TSX down 1.13 percent at 10,950.45
 * Gold and oil and gas sectors fall with commodity prices
 * August GDP down 0.1 percent on lower oil, gas extraction
 (Adds details)
 By Ka Yan Ng
 TORONTO, Oct 30 (Reuters) - Toronto's main stock index fell
on Friday morning as commodity-based stocks such as Canadian
Natural Resources (CNQ.TO: Quote) and Barrick Gold (ABX.TO: Quote) were
pressured by softening prices for oil and gold.
 Royal Bank of Canada (RY.TO: Quote) and other heavyweight bank
shares also handed back some of the meaty gains they made on
Thursday as profit-taking took hold after the index's big rally
in the previous session. Royal was down 1.2 percent at
 Oil company Canadian Natural led all decliners, down 1.8
percent at C$71.18, while gold miner Barrick dropped 2.5
percent to C$38.66.
 Gold prices drifted down to just above $1,040 per ounce as
the U.S. dollar edged higher. Oil eased further below $80 a
barrel following a 3 percent jump the previous day. [GOL/]
 Also dampening the market's mood, a report on Friday showed
Canadian gross domestic product unexpectedly shrank by 0.1
percent in August from July, casting serious doubt on the Bank
of Canada's forecast for economic growth in the third quarter.
 On the upside, the index's telecoms group rose 2.2 percent,
led by Rogers Communications (RCIb.TO: Quote), which jumped 5.2
percent to C$32.60.
 At 10:35 a.m. (1435 GMT), the S&P/TSX composite index
.GSPTSE was down 124.77 points, or 1.13 percent, at
 Trading on Friday could be volatile as investors digest a
rash of corporate results to get a sense of how the economic
recovery is doing.
 "I don't know what kind of fireworks, if any, we're going
to see today. I think most people will be quite happy to see
this month of October end right where it is," said Bruce
Latimer, trader at Dundee Securities.
 Entering the session, the TSX is down 2.8 percent for the
month of October from September, which could put an end to the
TSX's seven-month rally. It recently suffered four days of
triple-digit losses, but jumped 2.5 percent on Thursday as
strong U.S. data raised expectations that the world's biggest
economy was on the mend.
 ($1=$1.08 Canadian)
 (Reporting by Ka Yan Ng; editing by Peter Galloway)