(Updates with analyst comment, market reaction, details)
* TSX down 61.13 points, or 0.43 percent, to 14,204.24
* Half of TSX's 10 main groups fall
By Solarina Ho
TORONTO, July 24 (Reuters) - Canada's main stock index fell
on Friday as a rout in commodity prices pushed mining and energy
stocks toward deeper losses, while disappointing earnings and
some profit taking also added to the declines.
"What we're into here is a bit of a malaise as concerns
build about the economy in Canada ... and the state of the
global commodities," said Michael Sprung, president at Sprung
Investment Management Inc.
"Toronto's just having a very tough time. Given the state of
the world, perhaps prices were a little bit frothy. I wouldn't
call it a correction yet, but maybe we're heading for one."
Canadian drugmaker Valeant Pharmaceuticals International Inc
VRX.TO , which jumped more than 9 percent on Thursday after
investors cheered its quarterly earnings results, was by far the
biggest drag on the TSX. Shares fell 2.2 percent to C$333.43,
sending the overall health care sector retreating 0.5 percent.
At 11:08 a.m. EDT (1508 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was off 61.13 points, or 0.43
percent, to 14,204.24.
Of the index's 10 main groups, half were in the red.
Declining issues outnumbered advancing ones on the TSX by a 1.75
to 1 ratio. The index posted four new 52-week highs and 37 new
lows.
Shares of Encana Corp ECA.TO , Canada's No. 1 natural gas
producer, plunged 8.7 percent to C$10.25 after it reported a
bigger-than-expected quarterly loss. ID:nL3N1043YP
Suncor Energy SU.TO was off 1.4 percent to C$33.17.
The overall energy sector, which has fallen more than 25
percent since highs in April, retreated 1.6 percent.
U.S. crude CLc1 prices were mostly steady on Friday but
remained near $48 a barrel.
Other big losers include Goldcorp Inc G.TO , which was down
2.3 percent to C$16.27 and First Quantum Minerals FM.TO , which
was off 4.5 percent to C$11.74.
Teck Resources Ltd TCKb.TO fell 4.4 percent to C$9.49,
despite beating expectations, as investors remained unhappy with
bloated debt and hefty capital commitments. ID:nL1N1032JW
The materials group, home to mining names, slid 1.7 percent.
The sector has lost more than 16 percent in July alone.
Gold and copper prices hit multi-year lows, with gold
futures GCc1 falling to $1,079.3 an ounce amid a stronger
greenback and Copper prices CMCU3 dropping to $5,244 a tonne
on demand worries from top metals consumer China. GOL/ MET/L
Sprung said with the U.S. economy still in the growth stage,
however, Canada should benefit over the long run, noting the
downtrend may signal a good buying opportunity.