CANADA STOCKS-Miners drag TSX down; index set to drop 2 pct on week
* TSX falls 46.17 points, or 0.37 percent, to 12,363.16 * Gold miners lead decline as bullion falls * Gold drop overshadows robust jobs data By Alastair Sharp TORONTO, June 7 (Reuters) - Canada's main stock index fell on Friday, hurt by declines in major gold producers, as investors moved funds out of the safe-haven precious metal and into riskier assets in the wake of strong North American jobs data. With the retreat, the Toronto Stock Exchange's S&P/TSX composite index is on track for a weekly decline of more than 2 percent, and is trading lower than where it started the year. Bullion prices fell more than 2 percent after U.S. payrolls data beat expectations, supporting hopes that the recovery of the world's biggest economy was still on track. That hit Canada's gold miners particularly hard, with Goldcorp Inc down 3.4 percent at C$29.60 and Barrick Gold Corp off 3.3 percent at C$20.93. "When gold is going up people ignore it, when gold is going down it's an additional reason to sell gold miners," said Gavin Graham, chief strategy officer at Integris Pension Management. Graham said in the absence of inflation fears, for which gold can be held as a hedge, and as investors speculate on how soon the U.S. Fed will end its bond buying program, gold was falling out of favor. Added to that, "there is a great deal of dislike for gold stocks at present simply because of the concerns about rising costs and bringing in projects on time," Graham said. Surprisingly robust new jobs data in Canada did little to brighten the somber mood, with financial stocks mixed. Only four of the ten main sectors recorded gains. By mid-morning the index was down 46.17 points, or 0.37 percent, at 12,363.16. "The fact that half the market is made up of commodities ... that's going to have quite a large effect on the index even if the underlying fundamental economic news is good news," Graham said.
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