*TSX down 18.23 points, or 0.15 percent, at 11,917.85
*Seven of index’s 10 main groups lower
*Magna shares up 2 pct after report of shareholder vote (Adds details, quotes)
By Jennifer Kwan
TORONTO, June 22 (Reuters) - Toronto’s resource-heavy main stock index stumbled on Tuesday morning, pushed lower by weak commodity-linked issues and by data that showed a surprise drop in U.S. home sales.
In the index’s oil and gas group, Suncor Energy (SU.TO) was down 0.7 percent at C$34.29, and Encana Corp (ECA.TO) fell 0.7 percent to C$34.98. Miner First Quantum Minerals (FM.TO) fell 1.2 percent to C$63.80.
Resource-linked shares dropped with oil and base metals prices as expectations grew that a slow rise in China’s yuan would have a more limited impact on demand than initially anticipated. [O/R] [MET/L]
As well, U.S. data that showed existing home sales fell in May raised doubts about the pace of economic recovery [.N], said John Ing, president of Maison Placements Canada.
“What’s happening is that evidence of a slowdown is increasing and that’s bothering investors because, as we know, the recovery is in a very fragile and tenuous state,” Ing said.
At 10:25 a.m. (1425 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 18.23 points, or 0.15 percent, at 11,917.85, with seven of its 10 main sectors lower.
Gold miners’ shares rose with bullion prices XAU=, which climbed in part on persistent euro zone debt concerns.[GOL/] World No. 1 gold producer Barrick Gold (ABX.TO) was up 0.9 percent at C$46.26, and Goldcorp (G.TO) was up 0.8 percent at C$45.69 as
Shares of Magna International Inc MGa.TO climbed 2 percent to C$70.70. A majority of Magna shareholders have cast early votes in support of the auto-parts maker’s controversial plan to pay its founder a big premium to loosen his control, the Globe and Mail newspaper said on Tuesday. [ID:nN22114898]
Drugmaker Biovail Corp BVF.TO was up 8.8 percent at C$18.51. The company announced on Monday it will take over U.S-based Valeant Pharmaceuticals International (VRX.N) in a complex deal that the companies said will position them better to serve the growing baby boomer market. [ID:nSGE65K07S]
($1=$1.02 Canadian) (Reporting by Jennifer Kwan; editing by Peter Galloway)