July 8, 2010 / 2:38 PM / 8 years ago

CANADA STOCKS-TSX flat as gold shares drag; commodities mixed

* TSX off 0.1 percent at 11,384.18

* Nine out of 10 sectors higher

* Materials drive index lower (Adds details, quotes)

By Claire Sibonney

TORONTO, July 8 (Reuters) - Toronto’s main stock index was little changed on Thursday morning in wobbly trading after two straight sessions of gains, on mixed commodity prices as weak gold stocks offset a rally by energy and base-metal miners.

Gold miners held the TSX in check as gold prices eased below $1,200 an ounce, as growing optimism over the global economy limited investor interest in safe-haven assets.

The gold subsector was down almost 2 percent [GOL/], with Barrick Gold Corp (ABX.TO) off 2.2 percent at C$44.94, and Goldcorp Inc (G.TO) down 2.3 percent at C$42.37.

“I think we might pause a bit after yesterday’s move and go a bit sideways. The gold sector is the one putting pressure on the Canadian market.” said Francis Campeau, broker at MF Global Canada in Montreal.

“It was a hedge trade and I think people are taking their money out of the golds, into more of the energy and financials.”

Energy shares were up 0.5 percent, leading the gainers, after the price of oil bounced above $75 per barrel, supported by a global rally in riskier assets and an industry report showing a sharp fall in U.S. crude oil inventories. [O/R]

Suncor Energy (SU.TO) added 0.7 percent to C$32.74, while Cenovus Energy rose 1.4 percent to C$28.94.

Copper prices were also firmer, sending mining shares 0.6 percent higher with Teck Resources TCKb.TO up 1.1 percent to C$34.03. [MET/L]

At 10:12 a.m. (1412 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 13.09 points, or 0.1 percent, at 11,384.18.

“We had a fairly solid bounce over the last two sessions and perhaps the market is trying to find a bottom after the recent selloff,” added Campeau.

Supporting the broader risk sentiment, the International Monetary Fund raised its 2010 global growth forecasts for many countries, including Canada. [ID:nTOE666034]

As well, weekly U.S. jobless claims fell more than expected last week to their lowest level in two months, offering cautious hope for an economic recovery that had shown signs of fatigue. [ID:nN08209499]

$1=$1.04 Canadian Reporting by Claire Sibonney; editing by Rob Wilson

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