July 8, 2009 / 8:57 PM / 10 years ago

CANADA STOCKS-Commodity prices pull TSX lower for 3rd day

* TSX falls 1.94 percent to 9,653.45

* Third triple-digit decline in three days (Adds details, updates numbers)

By Ka Yan Ng

TORONTO, July 8 (Reuters) - Toronto’s main stock index fell on Wednesday for a third straight session as lower commodity prices shook the resource-heavy market, while financials again dropped on doubts about global economic recovery.

The S&P/TSX composite index .GSPTSE booked its third triple-digit decline in a row as hopes for a quick way out of recession faded fast.

“I think this is just a day where we’re seeing another swing as investors get more concerned about how fast growth will be and, as a result, how strong the rebound will be,” said Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri.

The S&P/TSX composite index closed down 190.90 points, or 1.94 percent, at 9,653.45. Nine of the 10 TSX sectors were lower.

The mining-laden materials sector led the retreat with a drop of 3.94 percent as the price of gold sagged as the U.S. dollar strengthened. A stronger U.S. dollar makes the precious metal more expensive for holders of other currencies.

The price of oil, a key driver for the energy-heavy TSX, sank towards $60 a barrel. The TSX index’s energy group shed 1.9 percent.

Key stocks driving the index lower were in the golds and financials, including Barrick Gold (ABX.TO), down 4.2 percent at C$36.63, and Bank of Nova Scotia (BNS.TO), off 2.8 percent at C$40.23.

Manulife Financial (MFC.TO) bucked the trend, rising 0.89 percent to C$19.21 as it said it plans to keep building capital to shield it from volatile markets, and could use the reserves for expansion or acquisitions down the road. [ID:nN08396843]

The consumer staples sector, up 0.52 percent, was the sole sector in higher territory.

$1=$1.17 Canadian Editing by Peter Galloway

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