TSX drops on resource selloff but golds rise

Wed Jan 19, 2011 5:07pm EST
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By Ka Yan Ng

TORONTO (Reuters) - Toronto's main stock index fell hard on Wednesday, weighed down by slumping commodity prices as well as unexpectedly weak North American economic data and by results from Goldman Sachsthat disappointed the market.

Copper prices retreated after hitting a record high, while U.S. crude oil prices eased for a second day. But the price of bullion rose for a third day.

"The euphoria that we've seen in the rise of these commodity prices may have been an overreaction to some of that news (about global demand)," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services.

"In the meantime, you're going to have these bumps in the road in terms of pricing."

Key decliners on the resource-heavy index included Potash Corp, down 3.66 percent at C$166.21, while Suncor Energy dropped 2.37 percent to C$37.87, and Talisman Energy fell 3.91 percent to C$22.10.

Teck Resources lost 2.32 percent to C$62.36 after it said that adverse weather and a rail traffic disruption would hold back its first-quarter coal sales.

Blue-chip advancers included several gold miners, including Kinross Gold, up 1.08 percent at C$16.88, and Agnico-Eagle, up 0.23 percent at C$69.65.

Nine of the index's 10 main sectors were lower, with the heavily weighted energy and materials groups both down more than 1 percent.   Continued...

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