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CANADA STOCKS-TSX falls to nearly 4-week low as oil, gold slide

Published 2016-05-09, 05:15 p/m
© Reuters.  CANADA STOCKS-TSX falls to nearly 4-week low as oil, gold slide
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(Adds analyst quotes, updates prices)
* TSX closed down 137.63 points, or 1 percent, at 13,563.84
* Eight of the TSX's 10 main groups ended lower

By Fergal Smith
TORONTO, May 9 (Reuters) - Canada's main stock index fell to
a nearly four-week low on Monday as lower commodity prices
weighed on energy and mining stocks, while financials also fell.

The index has fallen 2.9 percent from a recent six-month
high of 13,972.62, pressured by a weakening in commodity prices
and a wildfire that led to production cuts in Canada's oil sands
region.
"That commodity related energy trade that's had a pretty
good couple of months there, has faded here in the last couple
of weeks," said Paul Hand, managing director at RBC Capital
Markets.
The most influential movers on the index on Monday included
Barrick Gold Corp ABX.TO , which fell 5.5 percent to C$22.52,
and Goldcorp Inc G.TO , which declined 4.6 percent to C$23.65.
Spot gold XAU= fell 2 percent, while copper CMCU3 hit
its lowest in nearly a month as weak trade data from top
consumer China highlighted poor demand growth prospects and the
U.S. dollar rose. GOL/ MET/L
The materials group, which includes precious and base metals
miners and fertilizer companies, lost 4.5 percent.
Suncor Energy Inc SU.TO , which cut production last week
due to the wildfire, fell 1.8 percent to C$33.24.
About half of Canada's daily oil sands crude output, or 1
million barrels per day, has been taken offline, according to a
Reuters estimate.
Oil prices fell on expectations that U.S. crude inventories
would again build to record highs. U.S. crude futures CLc1
settled at $43.44 a barrel, down 2.73 percent, while the overall
energy group was down 1.9 percent. O/R
The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE closed down 137.63 points, or 1 percent, at 13,563.84.
It touched its lowest since April 12 of 13,535.54.
Eight of the index's 10 main groups ended lower.
"What you are searching for now is the bottom end of what is
likely to be a trading zone for the next couple of months ... to
digest what has been a pretty robust rally since February," said
Hand.
Financials dipped 0.4 percent, including a 0.6 percent drop
in the shares of Royal Bank of Canada RY.TO to C$75.62.
Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO said it
expected to file its first-quarter report with U.S. and Canadian
regulators on or before June 10, ahead of a July 31 deadline,
and reiterated its first-quarter forecasts. Still its shares
fell 5.2 percent to C$36.56.

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