Weak resources pull Toronto stocks lower

Thu Aug 14, 2008 5:10pm EDT
 
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By Leah Schnurr

TORONTO (Reuters) - The Toronto Stock Exchange's main index closed slightly lower on Thursday as easing commodity prices weighed on resource shares, but provided a boost for the wider market.

A drop to $115 a barrel for oil weighed on the heavyweight energy sector amid worries over the prospects for global demand growth. Among laggards in the group, Canadian Natural Resources (CNQ.TO: Quote) slid 2 percent.

The materials sector, home to resource shares, also fell, hurt by gold producers that dropped with bullion prices. Agnico-Eagle Resources (AEM.TO: Quote) was off 5.4 percent.

The lower commodity prices helped strengthen the broader market as they eased anxiety over the impact of soaring prices on the consumer and the economy. A rise in financial services helped put a floor under the index. Canadian Imperial Bank of Commerce (CM.TO: Quote) gained 1.3 percent.

"People viewed the commodity headwinds as just so severe that any time you get a pullback in the commodities, the market will try to make some headway," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd, in Calgary, Alberta.

The S&P/TSX composite index closed down 18.31 points, or 0.14 percent, at 13,358.91.

The energy and materials sectors were the only two groups in negative territory, losing 1.2 percent and 2.8 percent, respectively. In the oil patch, Canadian Natural fell C$1.72 to C$82.82, while Suncor Energy (SU.TO: Quote) lost 70 Canadian cents, or 1.2 percent, to C$56.00.

In the materials group, Agnico-Eagle fell C$3.06 to C$53.84, while Barrick Gold (ABX.TO: Quote) was down C$1.95, or 5.2 percent, at C$35.65.   Continued...

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