Toronto's main stock index closed sharply lower on Thursday as a slide in oil and gold prices and disappointing US economic data weighed on heavyweight energy, mining and financial shares. Among oil companies, Suncor Energy fell 2.88 percent to C$37.14, and Canadian Natural Resources, which said output at its Horizon oil sands project fell 22 percent in December, slid 3.03 percent to C$42.95.
Imperial Oil was another big decliner, down 2.64 percent at C$39.76. The energy group led the index's retreat, falling 1.73 percent. Oil prices dropped more than 2 percent to below $89 a barrel as a stronger dollar and December US retail sales data that missed Wall Street estimates deterred cautious investors, who were waiting to see if recent positive economic reports would translate into greater consumer demand.
Royal Bank of Canada was off 0.92 percent at C$51.61. Mining giant Barrick Gold extended its slump, sliding 1.54 percent to C$49.07. Goldcorp also fell, dropping 2.28 percent to C$42.94. The index's materials group, home to mining stocks, was down 1.16 percent. Financial issues, often influenced by economic factors, slipped 0.28 percent.
Safe-haven bullion retreated for a fourth straight day as the US dollar strengthened and expectations grew that Friday's US employment data will beat forecasts. The Toronto Stock Exchange's S&P/TSX composite index closed down 84.32 points, or 0.63 percent, at 13,311.67. Five of the index's main groups lost ground.
The index, which gained 3.79 percent in December, has lost 1 percent in the first three trading days of 2011. In individual company news, Valeant Pharmaceuticals International Inc was one of the biggest gainers. Its shares jumped 18.76 percent to C$35.45 after it said on Thursday it expected to report quarterly results that exceed analysts' expectations and issued a 2011 outlook that topped forecasts.
Shares of Baffinland Iron Mines, which was among the top traded companies on the TSX by volume, were down 0.69 percent at C$1.43. Nunavut Iron Ore Chairman Bruce Walter said his private equity-backed company has no plans to raise its take-over bid for Baffinland but did not rule out a higher bid.
BONDS LOWER Canadian government bond prices held lower across the curve after the two rounds of employment data. The forecast-beating domestic jobs figures kept pressure on the sector, as it suggested further underlying strength in the economy and the potential for interest rate hikes. But prices nearly gave back all the declines after the US data. Canada's government bonds continued to underperform their US counterparts. The interest-rate sensitive two-year bond fell 2 Canadian cents to yield 1.754 percent, while the 10-year bond was off 2 Canadian cents to yield 3.226 percent.
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