By Leah Schnurr
Reuters News Agency
Monday, September 11, 2006

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The Toronto Stock Exchange's main index closed down more than 200 points, falling for a fourth straight session as energy and gold-mining shares were yanked lower by retreating commodity prices.

Adrian Mastracci, portfolio manager at Vancouver’s ‘fee-only’ KCM Wealth Management, says, “I suspect that oil is probably going to go back up somewhere in the near future.”

Telus Corp. provided some support after it said it would convert into an income trust, boosting its shares and those of telecom rival BCE Inc.

The S&P/TSX composite index closed down 213.02 points, or 1.79 per cent, at 11,656.57.

"Once we have the selloff out of the way, things will begin to improve again and stabilize," said Joe Ismail, a technical analyst at Maison Placements Canada.

Shares in gold miners, part of the materials subindex, led the slide yesterday, falling 7.8 per cent after gold prices tumbled to below $600 (U.S.) an ounce for the first time in more than two months.

Barrick Gold, among the day's biggest net decliners, fell after it said it would sell its 50 per cent stake in the South Deep gold deposit in South Africa to Gold Fields for $1.5 billion.

Barrick was down $2.03 (Canadian), or 5.8 per cent, at $33.15, while Kinross Gold fell $1.52, or 10 per cent, to $13.98.

Heavyweight energy issues fell as oil prices continued their slide after OPEC said it would not cut oil output and Iran eased international tensions by offering to temporarily suspend its nuclear program.

U.S. October crude settled $65.61 (U.S.) a barrel, down 64 cents, after falling as low as $64.85, its lowest level since March 28.

Suncor Energy Inc. fell $4.30 (Canadian), or 5.4 per cent, to $75.80, while EnCana Corp. dipped $2.18, or 4 per cent, to $53.39.

As a whole, the energy group fell 4 per cent, erasing all the gains made so far this year.

"I would still look for these things to be short-term things and I suspect that oil is probably going to go back up somewhere in the near future," said Adrian Mastracci, investment counsel and president at KCM Wealth Management Inc. in Vancouver.

Overall, six of the TSX index's 10 main groups were lower.

Telus was the day's net gain leader, rising 13.8 per cent after it said it would transform itself into Canada's largest income trust.

Telus was up $7.25 at $59.80, while BCE was up $2.33, or 8.5 per cent, at $29.68 on speculation it might be pressured into doing the same.

Market volume was a hefty 379 million shares worth $8.9 billion. Decliners easily outpaced advancers 1,132 to 435. The blue chip S&P/TSX 60 index closed 10.40 points lower, or 1.55 per cent, at 659.50.

The Dow Jones industrial average rose 4.73 points, or 0.04 per cent, to end at 11,396.84. The Nasdaq composite index advanced 7.46 points, or 0.34 per cent, to close at 2,173.25.

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.