January 7, 2010 / 5:36 PM / 9 years ago

UPDATE 2-TSX pulled lower as oil, gold prices retreat

* Key index down 0.66 percent at 11,866.12

* Decline halts five-session winning streak

* Goldcorp, Barrick lead gold sector lower as bullion dips

* Market focus shifts to Friday jobs data (Updates to late morning)

By Claire Sibonney

TORONTO, Jan 7 (Reuters) - Toronto’s main stock index fell on Thursday as a drop in oil, gold and other commodity prices knocked resource issues lower, ending a five-session stretch of gains for the market.

Canadian Natural Resources Ltd (CNQ.TO), down 2.6 percent to C$74.25, and Suncor Energy Inc (SU.TO), off 1.12 percent, played the biggest roles of any two stocks in leading the market lower.

Oil slipped from a 15-month high a day earlier, a move traders attributed to signs of tighter monetary policy in China, which sparked concerns about demand for commodities. [O/R]

“We have a little profit-taking across the board here,” said said Bruce Latimer, a trader at Dundee Securities.

“The market has had a good tone to it the past three days. I don’t think it’s any indication of how we’re going to go the next few days.”

At 11:18 a.m. (1618 GMT) the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 79.10 points, or 0.66 percent, at 11,866.12. The index hit a 15-month high on Wednesday.

Gold stocks also weighed on the index as bullion prices retreated. [GOL/] Goldcorp Inc (G.TO) fell 0.88 percent to C$43.00 while Barrick Gold (ABX.TO) dropped 1.41 percent to C$42.57.

Goldcorp said on Thursday it will spend $513 million to buy Xstrata’s XTA.L 70 percent interest in the El Morro copper-gold project in Chile, foiling Barrick’s plans to acquire the stake. [ID:nN07183045]


The financial sector was also weaker with heavyweights Bank of Nova Scotia (BNS.TO) down 1.3 percent at C$46.90 and Royal Bank of Canada (RY.TO) off 0.63 percent at C$54.99.

“People who have been buying the market in the last few days have been pulling in their reins and seeing what levels the market will drift to,” Latimer said.

The drop in Toronto stocks mirrored losses in U.S. markets, which fell after the government reported a slight increase in initial jobless claims.

But Latimer said there are still widespread expectations that monthly North American jobs data, due on Friday, will be positive, which would extend the market’s bullish trend since the start of the year. [ID:nN0595130]

Among the TSX’s gainers, fertilizer major Potash Corp POT.TO rose 1.19 percent to C$128.74 while rail and aerospace giant Bombardier Inc (BBDb.TO) was up 2.4 percent at C$5.11.

Teck Resources Ltd TCKb.TO also gained 0.79 percent at C$40.79 after Scotia Capital raised the miner’s price target.

$1=$1.035 Canadian Reporting by Claire Sibonney; editing by Jeffrey Hodgson and Rob Wilson

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