By Jennifer Kwan
Reuters
Tuesday, June 19, 2007

Also published in:

TORONTO (Reuters) - The Toronto Stock Exchange's main index ended lower on Tuesday, pulled down by weakness in financial and energy issues as the market dropped back after a four-day winning streak.

Adrian Mastracci, fee-only portfolio manager at
KCM Wealth Management in Vancouver, says, "We've had a pretty good run over the last four weeks or so. For some people, it's time to take a little off the table."

The S&P/TSX composite index was down 56.93 points, or 0.4 percent, at 14,119.49. The drop followed a gain of more than 450 points in the past four sessions.

"We've had a pretty good run over the last four weeks or so," said Adrian Mastracci, portfolio manager and president at KCM Wealth Management Inc., in Vancouver. "For some people, it's time to take a little off the table."

Overall, eight of the TSX index's 10 main groups were lower, with the heavyweight financial and energy groups down 0.6 percent and 0.3 percent respectively. Combined, the sectors make up about nearly 60 percent of the index.

Materials lost 0.1 percent on weakness in some metals prices, including copper and nickel.

"All three major groups are down so that's the story," said John Kinsey, portfolio manager.

"I think it's just one of those days. Maybe, everything is taking a bit of a rest here."

Royal Bank of Canada slipped 60 Canadian cents, or 1.1 percent, to C$56.25, while Canadian Imperial Bank of Commerce fell C$1.67, or 1.7 percent, C$96.82.

Earlier on Tuesday, Statistics Canada reported Canada's annual core inflation rate cooled to 2.2 percent in May from 2.5 percent in April.

Despite the more moderate pace of inflation, analysts didn't appear to think the Bank of Canada would be deterred from raising interest rates.

Energy shares, which account for about 30 percent of the benchmark index, retreated as benchmark London Brent crude pulled back from the 10-month high of $72.25 it hit on Monday. U.S. crude, however, settled up 1 cent at $69.10 a barrel.

Shares of Talisman Energy Inc. slipped 42 Canadian cents, or 1.9 percent, to C$22.08, while Canadian Natural Resources Ltd. fell 75 Canadian cents, or 1 percent, to C$73.45.

Shares of Nuvo Research slipped 9 Canadian cents, or 28 percent, to 23 Canadian cents, the biggest percent loser on the TSX, after another setback from the U.S. Food and Drug Administration threatened to push back the approval date of its osteoarthritis treatment by another year.

Shares of CanWest Global Communications Corp. fell 30 Canadian cents, or 2.9 percent, to C$9.93 after it said after the bell on Monday it has agreed keep its controlling stake in Australia's Ten Network Holdings Ltd.

Market volume was 376 million shares worth C$7.1 billion. Decliners outpaced advancers 898 to 729. The blue chip S&P/TSX 60 index closed 3.73 points lower, or 0.46 percent, at 809.74.

South of the border, the Dow Jones industrial average rose 22.44 points, or 0.16 percent, at 13,635.42, while the Nasdaq Composite Index ended up 0.16 points, or 0.01 percent, at 2,626.76.

($1=$1.06 Canadian)

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.