January 19, 2011 / 9:46 PM / 8 years ago

CANADA STOCKS-TSX drops on resource selloff but golds rise

 * TSX falls 0.89 percent to end at 13,439.04
 * Materials, energy each fall more than 1 percent  (Updates to close)
 TORONTO, Jan 19 (Reuters) - Toronto’s main stock index fell hard on Wednesday, weighed down by slumping commodity prices as well as unexpectedly weak North American economic data and by results from Goldman Sachs (GS.N)that disappointed the market.
 Copper prices retreated after hitting a record high, while U.S. crude oil prices eased for a second day. But the price of bullion rose for a third straight day. [MET/L][O/R][GOL/]
 Key decliners on the resource-heavy index included Potash Corp POT.TO, down 3.66 percent at C$166.21, while Suncor Energy (SU.TO) dropped 2.37 percent to C$37.87. Teck Resources TCKb.TO lost 2.32 percent to C$62.36, and Talisman Energy TLM.TO fell 3.91 percent to C$22.10.
  Blue-chip advancers included several gold miners, including Kinross Gold (K.TO), up 1.08 percent at C$16.88, and Agnico-Eagle (AEM.TO), up 0.23 percent at C$69.65.
  Nine of the index’s 10 main sectors were lower, with the heavily weighted energy and materials groups both down more than 1 percent.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE dropped 120.16 points, or 0.89 percent, to finish at 13,439.04.
 The decline unwound the advance on Tuesday, when the index shot to its highest point since early September 2008. The S&P/TSX composite has climbed steadily since last summer without many interruptions, though it is still well off its pre-financial crisis peak above 15,000.
 “This market is due for a pullback and it’s doing it a little bit today,” said Levente Mady, market strategist at Union Securities in Vancouver. “It’ll be interesting to see which way we lean tomorrow, whether we’re just going to be a one-day wonder or something a little more substantial.”
 The index’s hefty financials group fell 0.53 percent, weighed by a drop in quarterly profit at Goldman Sachs Group, denting market optimism about a strong earnings season. [ID:nN18199881]
 Toronto-Dominion Bank (TD.TO) fell 0.55 percent to C$76.10, while Bank of Nova Scotia (BNS.TO) declined 0.83 percent to C$56.37.
 U.S. housing starts and Canadian manufacturing sales data for November fell well below expectations, bruising sentiment toward economic recovery.
 ($1=$1.00 Canadian)  (Reporting by Ka Yan Ng; editing by Peter Galloway)                                        

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