TSX dragged lower by energy stocks as oil falls

TORONTO (Reuters) - Canada’s benchmark stock index lost ground on Monday, weighed by energy stocks that retreated with oil and to a lesser extent by gold miners hurt by lower prices for bullion.

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014. REUTERS/Mark Blinch

The energy group fell 3.7 percent, as U.S. crude fell to a three-month low below $43 a barrel amid worries about a global supply glut and economic headwind.

The most influential weights on the index included its biggest oil and gas producers, with Canadian Natural Resources Ltd CNQ.TO shedding 4.4 percent to C$39.74 and Suncor Energy Inc SU.TO falling 3.3 percent to C$34.82.

“Until someone or something can make me understand why oil will go back to $60, $70, $80 a barrel I’m staying clear,” said Allan Small, a senior investment advisor at HollisWealth.

Major gold miners also moved lower, with Barrick Gold Corp ABX.TO down 3 percent at C$26.21 and Agnico Eagle Mines Ltd AEM.TO off 4.1 percent at C$67.78, as the price of bullion retreated ahead of central bank meetings in the United States and Japan.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.9 percent.

The world’s major economies pledged at a G20 meeting this past weekend to use all policy tools available to boost growth.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended down 102.56 points, or 0.70 percent, at 14,498.10. The index notched its highest close in a year on Friday.

Six of the index’s 10 main groups finished in negative territory and there were two falling stocks for every gainer.

The most influential gainers on the index included Canadian National Railway Co CNR.TO, up 0.9 percent at C$83.99.

The railway reported slightly lower earnings after the bell as a decline in shipments cut into revenue, but said it expects volumes to improve in the months ahead.

Rogers Communications Inc RCIb.TO, which reported strong earnings last week, added 1.7 percent to C$57.80.

Editing by Sandra Maler