Toronto stocks knocked lower for fifth session

Thu Jun 12, 2008 5:22pm EDT
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By Leah Schnurr

TORONTO (Reuters) - Weak resource issues sent the Toronto Stock Exchange's main index tumbling on Thursday for the fifth day in a row as commodity prices spent much of the day in negative territory.

Energy companies and miners led the way down as gold and oil prices were pressured by a gaining U.S. dollar, although oil was able to make a small late-day bounce amid worries over a possible strike in Nigeria.

Suncor Energy (SU.TO: Quote) was down C$2.89, or 4.2 percent, at C$65.87, while Agnico-Eagle Mines (AEM.TO: Quote) lost C$2.55, or 3.8 percent, to C$64.75.

"(Resource) stocks really haven't had a chance to catch up yet," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd. in Calgary.

"As people come to the realization that the commodity is still back up again, quite possibly tomorrow, we'll see some strength back into the sector."

The S&P/TSX composite index .GSPTSE closed down 113.93 points, or 0.77 percent, at 14,602.59 with four of its 10 main sectors pointing lower.

The energy sector gave up 1.4 percent, while the resource-laden materials group slipped 1 percent.

The small tech sector was able to add 1.7 percent, with help from a second day of big gains from Nortel Networks NT.TO. Nortel was up 80 Canadian cents, or 8.5 percent, at C$10.22 a day after it gave an upbeat presentation of its business plans.   Continued...

<p>A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch</p>