* TSX down 185.50 points , or 1.43 pct, at 12,749.24
* All 10 of the TSX’s main groups end lower
* Suncor down 3 pct, Barrick down 1.6 pct
* TSX index down 1.35 pct on the week (Updates, adds quotes)
By Solarina Ho
TORONTO, Nov 12 (Reuters) - Toronto’s main stock index sank on Friday as inflation worries in China drove expectations of an interest-rate hike, dragging down commodity prices and the resource-heavy TSX.
Oil heavyweight Suncor Energy (SU.TO) fell 3.13 percent, to C$34.93 while miner Barrick Gold (ABX.TO) was down 1.57 percent at C$51.25.
“The market is looking at action in China yesterday. The Chinese index was down about 5 percent,” said Youssef Zohny, an associate portfolio manager with Van Arbor Asset Management in Vancouver.
“(Inflation) came in much hotter than expected, so it seems like there’s going to be some tightening in China. That’s essentially what’s driving the market today.”
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE finished down 185.50 points, or 1.43 percent, at 12,749.24. All 10 of its main groups finished in the red.
The index retreated 1.35 percent on the week.
The materials sector, home to major miners, was down 1.9 percent, with Goldcorp (G.TO) off 1.22 percent at C$46.85. Base-metals miner Teck Resources TCKb.TO was down 1.47 percent at C$49.61. [MET/L]
Energy stocks gave back 1.75 percent. Canadian Natural Resources (CNQ.TO) fell nearly 2 percent to C$39.76, while Encana Corp (ECA.TO) slid 2.26 percent to C$29.42.
Crude prices fell more than 3 percent as China worries triggered profit-taking following gains of nearly 8 percent in the last two weeks. Gold prices took their biggest hit in four months, sliding 3 percent. [O/R][GOL/]
“There’s been a number of headwinds for commodities over the past few days ... it’s really the sore spot of the market right now,” said Jean-Francois Dion, vice-president and portfolio adviser of Canadian Equities at RBC Dominion Securities.
Concerns over sovereign debt in the euro zone also gave investors some pause.
“In general, you’re just seeing risk aversion from Europe and China,” Zohny said, noting some profit-taking following strong rallies by a number of stocks over the last few weeks.
The financial group, another index powerhouse, was down 1.17 percent with all the major banks firmly in the red. Royal Bank of Canada (RY.TO) fell 1.27 percent to C$53.02 and the Bank of Nova Scotia (BNS.TO) slipped 1.3 percent to C$53.15.
“Earnings season is winding down, so the focus is very much at the macro level right now. We’ll be looking for any signs of policy changes from China over the weekend or over the next few days,” said Dion.
($1=$1.01 Canadian) (Reporting by Solarina Ho; editing by Rob Wilson)