June 12, 2009 / 9:16 PM / 10 years ago

CANADA STOCKS-TSX closes lower but posts 4th week of gains

* TSX ends day down 0.65 percent at 10,644.96

* Exits week with 0.7 percent gain (Adds details, comments)

By Frank Pingue

TORONTO, June 12 (Reuters) - Toronto’s main stock index closed lower on Friday as a slide in oil prices pulled down the resource-heavy index, but it still notched up its fourth straight week of gains.

Energy companies, which were key drivers behind the TSX index’s 42 percent surge from the five-year low it hit in March, were the main movers behind Friday’s slide. They fell with oil prices, which turned lower a day after rising to near an eight-month high.

Shares of Canadian Natural Resources (CNQ.TO) dropped 1.9 percent to C$64.71, while EnCana Corp (ECA.TO) finished down 1.5 percent at C$61.99.

The TSX index’s energy sector fell 1.16 percent, second only to a 1.57 percent skid by the materials group, home to major mining issues. Seven of the TSX’s 10 sectors ended lower on Friday.

The S&P/TSX composite index .GSPTSE finished down 69.15 points, or 0.65 percent, at 10,644.96. For the week, it rose 0.7 percent.

The lower close did not prompt much concern among analysts as it was seen as a controlled move, unlike the triple-digit drops recorded en route to the March low.

“The fact that we’ve come up so much you’d think there would be a temptation to lock in profits, and I’m sure some people have, but there are still enough people saying this is the proverbial light at the end of the tunnel,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

“Normally, when we get huge runups there is volatility to move it down but we are not having that at all here.”

Gold-mining stocks dropped as gold futures broke below $940 an ounce after failing last week to break above the $1,000 an ounce level.

Goldcorp (G.TO) was down 2.3 percent at C$39.05, and Kinross Gold (K.TO) fell 3.7 percent to C$19.68.

While the TSX ended the week with a gain, trading was subdued over the five days, and Friday’s drop was the only triple-digit move. On Tuesday, the index fell just by just one point.

“There is a bit of tug and pull from some people saying this is a huge move up and let’s wait for the pullback, and so no one wants to rush in there after these big moves,” Nakamoto said.

“And yet there is enough cash on the sidelines where you get a bit of a dip and people will come in saying ‘I missed the big move up and I want to start deploying the cash’.”

$1=$1.12 Canadian Editing by Peter Galloway

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