May 9, 2008 / 3:26 PM / 11 years ago

UPDATE 1-Toronto stocks slip as resources retreat

(Updates to mid-morning)

TORONTO, May 9 (Reuters) - The Toronto Stock Exchange’s main index fell on Friday, as resource shares were hit by profit-taking after a strong run amid soaring oil prices.

The materials group led the way down, giving up 2.3 percent, while its subindex of gold producers slid 2.8 percent as U.S. gold futures eased.

Goldcorp (G.TO) was off C$1.50, or 3.7 percent, to C$39.20, while fertilizer company Potash Corp of Saskatchewan POT.TO was down C$4.34, or 2.1 percent, at C$198.31.

Meanwhile, the energy sector edged down 0.5 percent, as investors locked in gains while the price of oil jumped to another peak above $126 a barrel.

“I think that the two areas on the TSX that have held up nicely are obviously the energy and materials side, and we feel at these levels we just want to see a pullback in them,” said Paul Harris, portfolio manager at Avenue Investment Management.

The S&P/TSX composite index .GSPTSE was down 42.62 points, or 0.29 percent, at 14,565.37 after bouncing around both sides of the break-even mark after the open. Four of its 10 main sectors were lower.

In the energy group, Suncor Energy (SU.TO) was off C$1.51, or 1.2 percent, to C$124.74, while Imperial Oil (IMO.TO) dipped 92 Canadian cents, or 1.6 percent, to C$58.27.

On the upside, the financial sector added 0.9 percent, with Toronto-Dominion Bank (TD.TO) up 95 Canadian cents, or 1.4 percent, at C$67.75, and Bank of Nova Scotia (BNS.TO) ahead 78 Canadian cents, or 1.6 percent, at C$48.96.

Manitoba Telecom Services MBT.TO gained 42 Canadian cents, or 1 percent, to C$41.19 after it reported a higher first-quarter profit. The telecoms group was up 0.5 percent.

Linamar Corp (LNR.TO) jumped C$2.78, or 19.1 percent, to C$17.34 the day after it reported a rise in profit as revenue got a boost from strong growth in Europe and the ramping up of its Asian operations.

A surge of nearly 2 percent in the previous session had put the benchmark in sight of its record high of 14,646.82 that was set last July.

Harris said that while he expects the index to take a breather after its strong gains, it could take another run at the record in coming weeks.

“We feel comfortable that the market’s certainly going to do better overall for the year, but I think that a pullback is probably required,” said Harris. ($1=$1.01 Canadian) (Reporting by Leah Schnurr; editing by Rob Wilson)

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