September 23, 2009 / 8:37 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, comments and official numbers)
 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 broader energy sector closed 1.35 percent lower, a move credited 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.  (Reporting by Frank Pingue; editing by Peter Galloway)                                      

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