Toronto stocks finish 1.1 percent lower

Toronto stocks dropped sharply for a second consecutive session on Friday, falling more than 120 points as energy and gold issues retreated along with commodity prices.
The Toronto Stock Exchange S&P/TSX composite index closed down 127.36 points, or 1.1 percent, at 12,038.07. The main index fell 2 percent over two sessions and is down 1.9 percent on the week.
"The bottom line is that the Canadian equity market really took it on the chin today," said Patricia Croft, chief economist at Phillips, Hager & North.
The oil and gas sector, which represents about 30 percent of the main index, dropped 2.7 percent as crude oil fell $1.42 to $71.90 a barrel.
Suncor Energy Inc was the biggest drag on the main index, falling C$4.21, or 4.3 percent, to C$92.85, while EnCana Corp slipped C$1.70, or 3 percent, to C$55.63.
The gold group lost 3.3 percent, with Goldcorp down C$1.82, or 4.2 percent, at C$41.74, while Barrick Gold slipped 78 Canadian cents, or 2.1 percent, to C$37.22.
June gold futures fell 1.3 percent to $711.80 an ounce after rising to $732, their highest level since January 1980, as investors looked to the metal as a safe haven amid growing geopolitical tensions.
"We don't think there has been a fundamental change in anything," said Neil Andrew, a research analyst at Leeward Hedge Funds in Toronto. "We think gold continues to act well and that is one of our key areas."
Overall, six of the TSX index's 10 main groups fell. The tech sector gained 0.7 percent, halting a five-session slide. Nortel Networks rose 11 Canadian cents, or 3.9 percent, to C$2.91, while Research In Motion gained C$1.65, or 2.1 percent, to C$82.20.
Financial issues rose 0.9 percent as investors stepped back into the sector, which fell 2.3 percent during the week.
Market volume was 366 million shares worth C$6.2 billion. Decliners outpaced advancers 1,063 to 523. The blue chip S&P/TSX 60 index closed down 5.46 points, or 0.8 percent, at 676.28.
US stocks fell sharply on Friday extending a two-day slide as a jump in import prices fanned inflation fears.
The Dow Jones industrial average finished down 119.74 points, or 1.04 percent, at 11,380.99. The Nasdaq composite index dropped 28.92 points, or 1.27 percent, to close at 2,243.78.