February 27, 2012 / 4:08 PM / 7 years ago

CANADA STOCKS-TSX falls as oil and metals prices slip

* TSX down 77.85 pts, or 0.6 pct, at 12,647.92

* Resource, financial issues drag

* Lower oil prices hurt energy shares

* G20 meeting offers no more Europe funds

By Jon Cook

TORONTO, Feb 27 (Reuters) - Canada’s resource heavy index was lower on Monday morning as energy and mining issues fell with sliding oil, gold and copper prices and financial shares were hurt by the failure of G20 ministers at a weekend meeting to provide more funds to help Europe fight its lingering debt crisis.

Brent crude oil backed off Friday’s 10-month high and gold prices slipped, hurting the index’s materials and energy sectors, as investors cashed in some gains after last week’s strong rally.

“They’ve both had pretty good runs and there’s probably just a pause here,” said John Kinsey, portfolio manager at Caldwell Securities Ltd. “Everything looks to be a little soft here.”

Energy issues, down 1 percent, were led lower by top producer Suncor Energy, which dropped 1.4 percent to C$36.46.

One of the worst performing stocks was Petrominerales Ltd , which plunged nearly 14 percent to C$20.43 after the South America-focused oil and gas producer said production from its assets in Colombia and Peru fell in January as the company dealt with two off-line wells.

Among gold miners, Iamgold Corp slid 2 percent to C$15.58 after a price downgrade by Macquarie.

At 10:40 a.m. (1540 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 77.85 points, or 0.6 percent, at 12,647.92.

Unease about the risks to global growth posed by escalating oil costs hurt Potash Corp. The world’s largest fertilizer producer fell 1 percent to C$46.12.

Miner Teck Resources edged down 1.1 percent to C$40.20 on falling copper prices as Chinese consumption remained weak and as high oil prices threatened to derail a fragile global economy.

On Sunday, ministers from leading economies told Europe it must disburse extra money if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a larger European Union bailout fund.

Financial shares fell 0.8 percent, weighed down by the major banks, which will report quarterly earnings over the next two weeks. Royal Bank of Canada sank 1.2 percent to C$54.01 on expectations the country’s largest bank will post a decline in earnings per share, according to consensus estimates.

In earnings news, shares of Valeant Pharmaceuticals International rose nearly 2 percent to C$48.92 after the company posted a quarterly profit on Monday as acquisitions and growth in its dermatology business boosted revenue, offsetting the impact of a stronger U.S. dollar.

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