Retreating golds drag TSX lower

Thu Jan 13, 2011 5:32pm EST
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By Ka Yan Ng

TORONTO (Reuters) - Toronto's main stock index fell on Thursday, as major gold miners like Barrick Gold and Goldcorp retreated with the price of bullion.

The materials group, down 2.09 percent and home to gold miners, was the chief sector pulling down the overall index.

The fall by gold miners offset strength from base metal miners that rallied on news of another multibillion-dollar merger in the sector.

The Toronto Stock Exchange's S&P/TSX composite index fell 58.73 points, or 0.44 percent, to finish at 13,401.48. Six of the index's 10 main groups were higher, but were no match for the heavy losses in the materials sector.

Five gold miners were among the top 10 blue-chip heavyweight decliners. The gold subindex tumbled 2.9 percent.

Barrick lost 4.93 percent to close at C$46.88, while Goldcorp fell 3.44 percent to C$41.56. Kinross Gold declined 2.96 percent to C$17.05, Agnico-Eagle shed 2.4 percent to C$69.87 and Yamana Gold dropped 2.96 percent to C$11.82.

"The major (decliners) are the golds and the materials stocks. I think the materials stocks are partly paying the price for yesterday when they were up so strongly," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"The economic news today was not great. That was another strike against the sector ... that tends to be a pretty good proxy for sentiment toward global growth."   Continued...