September 23, 2009 / 9:02 PM / 9 years ago

CANADA STOCKS-TSX retreats from Fed rally to close lower

 * TSX falls 68.19 points to 11,517.54
 * Energy shares headline pullback
 * Gives up earlier, post-Fed gains  (Adds details)
 By Frank Pingue
 TORONTO, Sept 23 (Reuters) - Toronto’s main stock index ended lower on Wednesday as falling commodity prices rattled the resource-heavy market and ate away at gains made after the Federal Reserve said the U.S. economy was recovering.
 Shares of Suncor Energy (SU.TO), the biggest drag on the index, fell 3 percent to C$38.20, followed by Canadian Natural Resources (CNQ.TO), which ended down 2 percent at C$74.97.
 The index’s energy sector closed 1.35 percent lower, a move attributed to a drop in oil prices of nearly 4 percent after U.S. data showed a big jump in crude and products stockpiles. [O/R]
 The S&P/TSX composite index .GSPTSE closed down 68.19 points, or 0.59 percent, at 11,517.54.
 Earlier, the index touched a session high of 11,648.55, notching a gain of 62.82 points, after the Federal Reserve upgraded its assessment of the U.S. economy. [ID:nN23390829].
 But the Fed rally fizzled and the TSX eventually fell into negative territory and was unable to recovery.
 “It looks like a classic case of buy the rumor and sell the fact,” said Francis Campeau, a broker at MF Global Canada, in Montreal.
 “If you read the headlines, the headlines were bullish and the market reaction was 180 degrees from what came out,” Campeau said.
 The materials group, home to gold miners, stumbled to close down 1.7 percent as a delayed rally in the U.S. dollar after the Fed statement weighed on gold prices and dampened the metal’s status as a hedge against the greenback. [GOL/]
 Barrick Gold Corp (ABX.TO) shares dropped 2.5 percent to C$39.23, while Goldcorp (G.TO) shed 2.4 percent to C$43.72.
 Around mid-afternoon, the heavily weighted financials group was up about 1 percent and was holding the TSX index in positive territory. But the gain vanished in the session’s last hour.
 Six of the TSX’s 10 sectors ended lower.
 The information technology group led all sectors higher with a 2 percent gain, a move driven by shares of Research In Motion RIM.TO, which is expected to forecast strong gains when it reports quarterly results on Thursday. [ID:nN22344504]
 Shares of RIM rallied 1.75 percent to C$92.41.  (Reporting by Frank Pingue; editing by Peter Galloway)                                      

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