TORONTO (Reuters) - Toronto’s resource-heavy main stock index stumbled on Tuesday morning, pushed lower by weak commodity-linked issues and by data that showed a surprise drop in U.S. home sales.
In the index’s oil and gas group, Suncor Energy (SU.TO) was down 0.7 percent at C$34.29, and Encana Corp (ECA.TO) fell 0.7 percent to C$34.98. Miner First Quantum Minerals (FM.TO) fell 1.2 percent to C$63.80.
Resource-linked shares dropped with oil and base metals prices as expectations grew that a slow rise in China’s yuan would have a more limited impact on demand than initially anticipated. <O/R> <MET/L>
As well, U.S. data that showed existing home sales fell in May raised doubts about the pace of economic recovery .N, said John Ing, president of Maison Placements Canada.
“What’s happening is that evidence of a slowdown is increasing and that’s bothering investors because, as we know, the recovery is in a very fragile and tenuous state,” Ing said.
At 10:25 a.m. EDT, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 18.23 points, or 0.15 percent, at 11,917.85, with seven of its 10 main sectors lower.
Gold miners’ shares rose with bullion prices, which climbed in part on persistent euro zone debt concerns.<GOL/> World No. 1 gold producer Barrick Gold (ABX.TO) was up 0.9 percent at C$46.26, and Goldcorp (G.TO) was up 0.8 percent at C$45.69 as
Shares of Magna International Inc MGa.TO climbed 2 percent to C$70.70. A majority of Magna shareholders have cast early votes in support of the auto-parts maker’s controversial plan to pay its founder a big premium to loosen his control, the Globe and Mail newspaper said on Tuesday.
Drugmaker Biovail Corp BVF.TO was up 8.8 percent at C$18.51. The company announced on Monday it will take over U.S-based Valeant Pharmaceuticals International VRX.N in a complex deal that the companies said will position them better to serve the growing baby boomer market.
Reporting by Jennifer Kwan; editing by Peter Galloway