* TSX drops 1.24 percent to 13,761.29
* All 10 sectors fall, driven lower by resources
* Conservative election victory seen providing stability (Adds details)
By Ka Yan Ng
TORONTO, May 3 (Reuters) - Toronto’s main stock index tumbled to a near two-week low on Tuesday morning, driven down by weakening commodity shares as oil and copper prices dropped, with the victory of the business-friendly Conservatives in Monday’s election having little immediate impact.
The index’s energy and materials sectors shed more than 2 percent as a strengthening U.S. dollar sapped investor appetite for commodities. Most commodities are priced in U.S. dollars. [GOL/][IO/R]
Suncor Energy (SU.TO) fell 3.5 percent to C$42.44, the heaviest decliner, even though the country’s biggest energy company reported a higher quarterly profit on Tuesday. Its drag on the index was twice that of the next nearest decliners, which were a pair of gold mining stocks. [ID:nL3E7G312N]
Goldcorp (G.TO) fell 2.5 percent to C$48.86, while Barrick Gold (ABX.TO) lost 1.1 percent to C$46.75 as gold prices slipped from record highs above $1,570 an ounce on waning safe-haven buying. Silver and copper prices were also lower on the day.
“Many sectors are under pressure, and commodities are (down) on the follow-through from yesterday,” said Francis Campeau, broker at MF Global Canada, in Montreal.
At 10:45 a.m. (1445 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down down 173.22 points, or 1.24 percent, at 13,761.29. All 10 main index groups were lower, dragging the benchmark as low as 13,753.36 in early dealings, its lowest point since April 20.
Campeau said the solid Conservative victory in Monday’s election will offer the market long-term stability.
The business-friendly party, which has formed a minority government since 2006, now has a clear majority mandate to govern for four years.
“By (the Conservatives) getting a clear majority in the Parliament, markets are able to handicap investment opportunities better,” said Stephen Wood, chief investment strategist for North America at Russell Investments in New York, noting that energy shares will probably get a boost, as will tax-sensitive and interest-rate sensitive sectors.
The main stock market traded cautiously in the final week of the election campaign with analysts attributing some of the retreat to wariness inspired by the surge of the left-leaning New Democratic Party (NDP) in public opinion polls. [ID:nN29174448]
The NDP rose to second place in the election, becoming the official opposition for the first time, unseating the Liberals who dropped to third place, also for the first time in history. [ID:nN03272319]
($1=$0.95 Canadian) (Reporting by Ka Yan Ng; editing by Peter Galloway)