CANADA STOCKS-TSX drops after two rising sessions as gold sags

* TSX falls 0.22 percent to 11,372.39

* Seven of 10 sectors lower, led by materials

* Energy ekes out gain with firm oil price
(Updates to midafternoon)

TORONTO, July 8 (BestGrowthStock) – Toronto’s main stock index
dropped on Thursday afternoon after two sessions of gains as
falling bullion prices dragged down gold shares.

Gold miners sagged as the price of gold held below $1,200
an ounce. Growing optimism over the global economy limited
investor interest in the precious metal and other safe-haven
assets. [GOL/]

“There’s a little profit-taking in that sector. It’s
certainly had a good run. It’s been one of the better sectors
in the last little while,” said Bruce Latimer, trader at Dundee
Securities.

The S&P/TSX global gold index (.SPTTGD: ), which tracks mid-
to large-sized gold miners in several markets, fell 2.44
percent. The materials group, home to gold issues, was off 0.97
percent.

Barrick Gold Corp (ABX.TO: ) dropped 3.7 percent at C$44.25,
and Goldcorp Inc (G.TO: ) slid 2.3 percent at C$42.34.

At 2:45 p.m. (1845 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 24.88 points, or
0.22 percent, at 11,372.39. Market momentum was to the downside
with seven of the index’s 10 main groups were lower.

Some consolation was seen in the oil and gas group, which
was one of three advancing sectors on Thursday. The price of
oil bounced above $75 per barrel, supported by a global rally
in riskier assets and an industry report showing a sharp drop
in U.S. crude oil inventories. [O/R]

That helped boost big-name energy issues such as Canadian
Natural Resources (CNQ.TO: ) add 1.56 percent to C$36.38, while
EnCana (ECA.TO: ) rose 1.9 percent to C$33.79.

($1=$1.04 Canadian)

(Reporting by Ka Yan Ng; Editing by Frank McGurty)

CANADA STOCKS-TSX drops after two rising sessions as gold sags