CANADA STOCKS-Drop in oil, gold prices drives TSX lower

Fri Oct 31, 2008 10:32am EDT
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TORONTO Oct 31 (Reuters) - The Toronto Stock Exchange's main index .GSPTSE fell more than 2 percent at the open on Friday as gold and oil prices swooned.

The energy group led the index lower as oil eased below $65 a barrel. The price of oil is on track to post its biggest monthly fall yet, still pressured by Thursday's data that showed the U.S. economy contracted in the third quarter. [ID:nSP407200]

Gold was headed for its biggest monthly drop since 1983 on recession fears, pushing Toronto's gold subindex down 2 percent, and contributing to the 2.8 percent fall in the materials group.

Goldcorp G.TO lost 3.1 percent to C$23.77 as third-quarter profit nearly quadrupled. [ID:nN31336677] Centerra Gold CG.TO fell 2.5 percent to C$1.17 even though it said it swung to profit [ID:nWNAB5834].

But Eldorado Gold ELD.TO rose 1 percent to C$5.34 as it reported higher quarterly net income [ID:nWNAB5817].

Toronto's drop on Friday snapped three straight days of gains.

"We've had a nice pop. There's still an awful lot of problems hitting us, but we're slowly getting through them," said Sal Masionis, stockbroker at Brant Securities.

Shortly after 10:10 a.m., the S&P/TSX composite index .GSPTSE was down 123.06 points, or 1.25 percent, at 9,733.15. (Reporting by Ka Yan Ng; Editing by Peter Galloway)