CANADA STOCKS-TSX drops as fading Syria fears hit oil, gold shares

Tue Sep 10, 2013 4:34pm EDT
 
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* TSX falls 30.16 points, or 0.23 percent, to 12,824.48
    * Six of the 10 main index sectors decline
    * Gold producers slip 4.8 percent as bullion drops
    * Goldcorp has biggest negative influence on the index

    By John Tilak
    TORONTO, Sept 10 (Reuters) - Canada's main stock index
slipped on Tuesday as concerns about a U.S. military strike on
Syria faded, dragging shares of gold miners and energy companies
lower.
    Data from China that showed industrial output topped
expectations in August failed to lift sentiment on the Toronto
market. 
    Prices for bullion and oil surged in recent weeks as
investors looked for safe havens as fears spawned by the Syrian
conflict escalated. This week gold and oil have given up some of
those gains. 
    The bullion price shed about 1.6 percent on Tuesday, pushing
gold miners down 4.8 percent. A nearly 2 percent decline in the
price of oil helped take energy producers down 0.4 percent.
  
    Tensions relaxed after Syria accepted a Russian proposal to
give up chemical weapons in hopes of winning a reprieve from a
U.S. military strike. 
    "Some of the war premium in gold and oil is starting to come
out of the market today," said Youssef Zohny, portfolio manager
at Stenner Investment Partners, a unit of Richardson GMP.
    "There's definitely some short-term volatility," he added.
"You will definitely see stabilization and some improvement in
the commodity space."
    The Toronto Stock Exchange's S&P/TSX composite index
 closed down 30.16 points, or 0.23 percent, at
12,824.48. Six of the 10 main sectors on the index were in the
red.
    The materials sector, which includes mining stocks, lost 1.9
percent. Shares of gold producers fell the most.
    Goldcorp Inc declined 6.7 percent to C$28.16 and had
the biggest negative influence on the index. Barrick Gold Corp
 gave back 4.3 percent to C$19.06.
    In the energy group, Suncor Energy Inc lost 1
percent to C$36.42, and Encana Corp was down 0.9
percent at C$18.02.
    Financials, the index's most heavily weighted sector,
slipped 0.2 percent as declines in some banks offset strength in
insurance companies.
    Toronto-Dominion Bank fell 0.8 percent to C$90.63,
but Manulife Financial Corp climbed 0.6 percent to
C$17.82.