CANADA STOCKS-TSX flat as gold shares drag; commodities mixed

* TSX off 0.1 percent at 11,384.18

* Nine out of 10 sectors higher

* Materials drive index lower
(Adds details, quotes)

By Claire Sibonney

TORONTO, July 8 (BestGrowthStock) – Toronto’s main stock index was
little changed on Thursday morning in wobbly trading after two
straight sessions of gains, on mixed commodity prices as weak
gold stocks offset a rally by energy and base-metal miners.

Gold miners held the TSX in check as gold prices eased
below $1,200 an ounce, as growing optimism over the global
economy limited investor interest in safe-haven assets.

The gold subsector was down almost 2 percent [GOL/], with
Barrick Gold Corp (ABX.TO: ) off 2.2 percent at C$44.94, and
Goldcorp Inc (G.TO: ) down 2.3 percent at C$42.37.

“I think we might pause a bit after yesterday’s move and go
a bit sideways. The gold sector is the one putting pressure on
the Canadian market.” said Francis Campeau, broker at MF Global
Canada in Montreal.

“It was a hedge trade and I think people are taking their
money out of the golds, into more of the energy and
financials.”

Energy shares were up 0.5 percent, leading the gainers,
after the price of oil bounced above $75 per barrel, supported
by a global rally in riskier assets and an industry report
showing a sharp fall in U.S. crude oil inventories. [O/R]

Suncor Energy (SU.TO: ) added 0.7 percent to C$32.74, while
Cenovus Energy rose 1.4 percent to C$28.94.

Copper prices were also firmer, sending mining shares 0.6
percent higher with Teck Resources (TCKb.TO: ) up 1.1 percent to
C$34.03. [MET/L]

At 10:12 a.m. (1412 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was down 13.09 points, or 0.1
percent, at 11,384.18.

“We had a fairly solid bounce over the last two sessions
and perhaps the market is trying to find a bottom after the
recent selloff,” added Campeau.

Supporting the broader risk sentiment, the International
Monetary Fund raised its 2010 global growth forecasts for many
countries, including Canada. [ID:nTOE666034]

As well, weekly U.S. jobless claims fell more than expected
last week to their lowest level in two months, offering
cautious hope for an economic recovery that had shown signs of
fatigue. [ID:nN08209499]

($1=$1.04 Canadian)
(Reporting by Claire Sibonney; editing by Rob Wilson)

CANADA STOCKS-TSX flat as gold shares drag; commodities mixed