September 17, 2009 / 9:23 PM / 9 years ago

CANADA STOCKS-TSX falls as profit-taking ends 5 days of gains

* TSX closes down 0.24 percent at 11,528.23

* Profit-taking sets in after five straight days of gains

* Financials hold up, but energy, materials groups fall (Adds comments, details)

By Wojtek Dabrowski

TORONTO, Sept 17 (Reuters) - Toronto’s main stock index finished lower on Thursday as investors decided to take profits after five straight sessions of gains.

The pullback was broad, with eight of the index’s 10 main groups pacing lower. The two advancing groups, financials and health care, rose 0.45 percent and 0.18 percent, respectively.

“It feels like a pause more than anything else,” said Elvis Picardo, vice-president of research at Global Securities in Vancouver. “The point to note also is the market continues to display pretty impressive resilience.”

The S&P/TSX composite index .GSPTSE dropped 27.37 points, or 0.24 percent, to end at 11,528.23, retreating as crude ended slightly lower and gold backed away from 18-month highs.

Among its falling components, the energy group edged down 0.4 percent, while the resource-heavy materials group gave up 1.37 percent.

Notable decliners included First Quantum Minerals (FM.TO), which tumbled 8.7 percent to close at C$64.25 after analysts downgraded the stock. First Quantum said on Wednesday it had suspended its copper project in the Democratic Republic of Congo.

Gold miner Royal Gold RGL.TO gave up 4.6 percent to end at C$47.79. BlackBerry maker Research In Motion RIM.TO fell 1.2 percent to C$88.25.

Amid the winners, fertilizer producer Potash Corp POT.TO rose 2.85 percent to C$103.25. Private-equity firm Onex Corp OCX.TO rose 2.1 percent to C$24.65.

“As the month progresses, we’re certainly getting an improvement in investor confidence,” Picardo said.

Francis Campeau, a broker at MF Global Canada, said that although investors are betting on an economic recovery in the near term, some caution should still be exercised.

“The question is, have we priced in too many good news?” he said.

The S&P/TSX 60 index of Canadian blue chips shed 0.92 points to end at 692.83.

Earlier in the day, the market got some support from data on the U.S. labor and housing markets, which reinforced the outlook that the economic recovery was gaining momentum.

Inflation data in Canada had little impact. It showed prices fell by 0.8 percent in August compared with a year earlier, the second-largest 12-month drop in over 50 years. [ID:nN17185718]

$1=$1.07 Canadian Reporting by Wojtek Dabrowski; editing by Peter Galloway

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