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By Frank Pingue
TORONTO, Jan 5 (Reuters) - Toronto’s main stock index was pinned lower early on Monday as investors unloaded gold-mining shares as gold prices fell nearly 3 percent.
The bulk of the index’s slide was due to a 4 percent skid in the materials group, home to heavily-weighted gold mining companies. Gold fell as low as $843.50 an ounce.
The lower open for the key index followed an 11 percent surge last week, when many traders were away for holidays, leaving the market prone to volatile swings.
At 10:00 a.m. (1500 GMT), the the S&P/TSX composite index .GSPTSE was down 83.68 points, or 0.91 percent, at 9,150.43. Nine of the index’s 10 main groups were lower.
“A lot of people just have a wait-and-see attitude here right now and are cautiously optimistic after the market rallied in the last week of the year,” said Bruce Latimer, trader at Dundee Securities.
“So there is a little bit of profit-taking in the first bit of today’s session and I think people are very day-to-day.”
Toronto-Dominion Bank (TD.TO) shares were 0.79 percent lower at C$43.74 after the bank said it plans to raise C$175 million in a preferred share offering to bolster its capital position.
$1=$1.20 Canadian Reporting by Frank Pingue; editing by Peter Galloway