January 5, 2009 / 3:15 PM / 10 years ago

CANADA STOCKS-TSX pinned lower as gold shares unloaded

(Adds details and comments)

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.”

Shares of Barrick Gold Corp (ABX.TO), the biggest drag on the index, were down 5.6 percent at C$41.29, while Goldcorp (G.TO) shares fell 6.46 percent to C$35.62.

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

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below