*TSX down 138.14 points, or 1.2 percent, at 11,797.94
*Nine of index’s 10 main groups lower
*Biovail continues to rally, up 13 percent
(Updates to close)
By Claire Sibonney
TORONTO, June 22 (Reuters) - Toronto’s resource-heavy main stock index tumbled on Tuesday, pushed lower by weak commodity prices and a surprise drop in U.S. home sales.
The index’s energy sector fell 2.3 percent as Suncor Energy (SU.TO) dropped 2.4 percent to C$33.73, and Encana Corp (ECA.TO) lost 3.1 percent to C$34.16.
Base-metal miners knocked off 3.2 percent as Teck Resources TCKb.TO shed 3 percent at C$35.57 and First Quantum Minerals (FM.TO) fell 3.1 percent to C$62.60.
The hefty drop in resource-linked shares followed a decline in 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]
“Softer prices are a natural sort of corollary to concerns about slowing global growth,” said Elvis Picardo, analyst and strategist at Global Securities in Vancouver.
“China’s announcement caused some extremely short-term optimism and a flurry of buying but I guess investors reassessed the implications of that move.”
As well, U.S. data that showed existing home sales fell in May raised doubts about the pace of economic recovery. [ID:nN22382886]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE closed down 138.14 points, or 1.16 percent, at 11,797.94, with nine of its 10 main sectors weaker.
Healthcare shares gained 3.3 percent as drugmaker Biovail Corp BVF.TO rallied 13.1 percent to C$19.25.
The company said on Monday it would take over U.S-based Valeant Pharmaceuticals International (VRX.N) in a complex deal that the companies said would position them better to serve the growing baby boomer market. [ID:nSGE65K07S]
($1=$1.03 Canadian) (Editing by Mario Di Simine)