By Leah Schnurr
Reuters News Agency
Wednesday, September 20, 2006

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TORONTO (Reuters) - The Toronto Stock Exchange's main index fell again on Wednesday with the energy sector dropping to its lowest level in 10 months as crude oil prices extended their slide.

Adrian Mastracci, portfolio manager at Vancouver’s ‘fee-only’ KCM Wealth Management, says, “For those that see that same view, maybe this is an opportunity to buy in on energy.”

The key S&P/TSX composite index closed down 66.32 points, or 0.6 percent, at 11,635.39. The index has closed down eight out of the past 11 sessions.

"I guess all of a sudden we don't need any more natural gas or oil so everybody is just jumping on it and hitting the stocks down," said Sal Masionis, stockbroker at Brant Securities in Toronto.

"How low we go, no one knows, it might take a little time to have a bounce back."

Five of the TSX index's 10 main groups were down, led by oil and gas shares, which fell 3.1 percent to their lowest level since last November.

October crude fell $1.20 to $60.46 a barrel on an increase in distillate and gasoline supplies, and easing tensions over Iran's nuclear program.

EnCana Corp. slid C$1.41, or 2.7 percent, to C$50.59, while Petro-Canada dropped C$1.83, or 4.1 percent, to C$42.64.

Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc. in Vancouver, said that while he believes the energy sector will be down in the short term, prices will come back up on demand.

"For those that see that same view, maybe this is an opportunity to buy in," said Mastracci.

Shares in gold miners extended Tuesday's losses even though gold futures rose. The sector fell 0.9 percent.

Barrick Gold slipped 50 Canadian cents, or 1.5 percent, to C$31.95, while Kinross Gold fell 6 Canadian cents, or 0.4 percent, to C$13.26.

December delivery gold moved up $3.00, or 0.5 percent, to $586.20 an ounce.

The technology sector got a boost as investors looked to move their money out of oils. Shares were up 1.2 percent, with Research In Motion jumping C$4.27, or 4.5 percent, to C$99.97. Nortel Networks was up 2 Canadian cents, or 0.8 percent, at C$2.62.

In corporate news, Loblaw Cos. Ltd. , which is going through an ambitious supply-chain restructuring plan, said that both its president and chairman had resigned.

Canada's largest food retailer was down C$1.00, or 2 percent, at C$49.50.

Market volume was 344 million shares worth C$6 billion. Decliners outpaced advancers 865 to 677. The blue chip S&P/TSX 60 index closed 1.61 points lower, or 0.2 percent, at 662.89.

South of the border, the U.S. Federal Reserve left interest rates unchanged for the second consecutive month, as was expected, boosting stocks.

The Dow Jones industrial average was up 72.28 points, or 0.63 percent, to end at 11,613.19. The Nasdaq Composite Index was up 30.52 points, or 1.37 percent, to close at 2,252.89.

($1=$1.13 Canadian)

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