June 28, 2010 / 7:06 PM / in 7 years

CANADA STOCKS-TSX drops with oil, gold prices

 * TSX down 74.64 points at 11,633.21.
 * Weak gold prices help TSX extend losses
 * G20 summit fails to lift market  (Adds details, quotes)
 By Jennifer Kwan
 TORONTO, June 28 (Reuters) - Toronto’s main stock index extended losses on Monday afternoon on weaker commodity prices, with the move lower accelerated by a steep drop in bullion.
 Banks also fell even as Group of 20 leaders at a Toronto summit agreed to give banks more time to adopt tougher global rules. [ID:nN27241260]
 Big stocks falling included Royal Bank of Canada (RY.TO), the country’s largest lender, down 0.7 percent at C$52.66, and Toronto-Dominion Bank (TD.TO), down 0.7 percent at C$70.78, Suncor Energy Inc (SU.TO) fell 0.6 percent to C$33.04, while Barrick Gold (ABX.TO) dropped 0.2 percent to C$47.98.
 “I think the biggest movement today was a strong reversal in the precious metal sector,” said Francis Campeau, broker at MF Global Canada in Montreal.
 Gold retreated 1 percent on a sharp technical sell-off and dwindling safe-haven buying. The decline helped drag down materials by 1.1 percent. [GOL/]
 At 2:28 p.m. (1828 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was down 74.64 points, or 0.64 percent, at 11,633.21.
 Leaders of the Group of 20 rich and developing nations, who met in Canada this weekend, agreed on Sunday to take different paths towards assuring lasting growth and making their banking systems safer, a reflection of the uneven and fragile economic recovery in many countries.  For more G20 news, please see: [ID:nN18322198]
 Analysts said that while targets for debt and deficit ratios in the G20 communique were mildly positive for the market, they were skeptical about implementation and warned that markets are focused on broader issues right now. [ID:nN27235152]
  “I don’t think anyone was expecting to have a G20 and come in and have the market rally 400-500 points. The fact they addressed some major issues was certainly positive,” said Bruce Latimer, trader at Dundee Securities.
 “The proof will be in the pudding down the road.”
 As well, oil prices fell below $79 a barrel as concern eased over how Tropical Storm Alex in the Gulf of Mexico would affect crude supply. That helped pull down Toronto energy issues by 1.4 percent. [O/R]
 Eight of the index’s 10 main groups were lower.    ($1=$1.03 Canadian)  (Additional reporting by Claire Sibonney; Editing by Frank McGurty)                                       

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