CANADA STOCKS-TSX falls as uncertainty hits energy, banks

* TSX falls 64.87 points, or 0.56 pct, to 11,504.74

* Energy, financials, base metals fall

* Gold stocks rally more than 3 percent

* RIM sinks 5 percent
(Adds details, quotes)

By Claire Sibonney

TORONTO, June 7 (BestGrowthStock) – Toronto’s main stock index
ended at its lowest level more than two weeks on Monday as
energy and financial shares tumbled on economic uncertainty,
offsetting gains by surging gold issues.

Among the biggest decliners were Royal Bank of Canada
(RY.TO: ), down almost 2 percent at C$52.48, and Suncor Energy
Inc (SU.TO: ), off more than 2 percent at C$31.79.

“The overhang is the uncertainty in Europe,” said Steve
Ibel, institutional equities trader at Beacon Securities.

With ongoing fears about euro zone debt contagion causing
investors to flee to safe-haven assets, gold rallied to less
than $10 below its record high. [GOL/]

Gold-mining stocks soared 3.4 percent with Barrick Gold
Corp (ABX.TO: ), the world’s largest producer, up 4.3 percent at
C$45.81, and Goldcorp Inc (G.TO: ) 4.7 percent higher at

“Gold is having a kick-ass day, which kind of points to a
bit more uncertainty,” Ibel said.

“To me it’s a risk parameter too, so anywhere you see gold
spike as much as it does in one day on not a whole lot of news,
it makes me wonder if there is anything else we should be
reading into it.”

Meanwhile, copper tumbled to eight-month lows, sending the
base metals subsector down more than 4 percent.

Teck Resources (TCKb.TO: ), Canada’s biggest base metals
producer, slumped almost 5 percent to C$31.14, while First
Quantum Minerals (FM.TO: ) dropped almost 6 percent to

“In the materials space, you’re seeing some more rotation
from more cyclical commodities like copper into more
safe-havens like gold,” said Youssef Zohny, associate portfolio
manager at Van Arbor Asset Management in Vancouver.

Zohny noted that non-cyclical, or “defensive”, stocks such
as consumer staples, up 1.2 percent, are also benefiting. “I
think that’s a sign of the uncertainty in the economy,” he

The Toronto Stock Exchange’s S&P/TSX composite index
(.GSPTSE: ) closed down 64.87 points, or 0.56 percent, at
11,504.74, its lowest level since May 20, after treading higher
for most of the day.

Seven of the 10 main groups were lower, including the
economically sensitive industrials sector, down 2.2 percent.

“There are still definitely some bumps in the road out
there in terms of the economic recovery,” Ibel said.

“You’re still not seeing consumer spending pick up at the
pace you want in the United States and you’re still not seeing
the job growth as you want in the United States,” he said,
referring to Friday’s disappointing U.S. jobs data for May.

Also dragging on the index were shares of Research In
Motion Ltd (RIM.TO: ), which fell 5 percent to C$60.04 after an
analyst said North American sales of the BlackBerry smartphone
slid in May.

In a double-whammy to the stock, the report came out the
same day that Apple Inc (Read more about Apple stock future.) (AAPL.O: ) unveiled its latest iPhone,
which is starting to make deep inroads into BlackBerry’s once
secure corporate market. [ID:nN07197833]

Ibel pointed out that volume was quite low during Monday’s
rocky trading session and that traders were looking for
direction from data coming out later in the week, such as U.S.
wholesale inventories, jobless claims and retail sales data.

Investment Research

($1=$1.06 Canadian)
(Reporting by Claire Sibonney; editing by Peter Galloway)

CANADA STOCKS-TSX falls as uncertainty hits energy, banks