TSX trims losses, but Europe weighs

Mon Jan 30, 2012 5:09pm EST
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By Jennifer Kwan

TORONTO (Reuters) - The TSX ended lower on Monday in cautious action after Greece and its private creditors failed to come up with a debt deal, but the TSX managed to rebound from early losses in a sign of underlying market resilience.

Heavyweight stocks on the downside included Suncor Energy (SU.TO: Quote), down 0.6 percent at C$34.34, First Quantum (FM.TO: Quote), down 5.6 percent lower at C$21.74, and Goldcorp (G.TO: Quote), which slid 0.9 percent to C$48.78.

The materials sector, home to major miners, skidded 1.1 percent as commodity prices retreated on renewed worries for demand amid fresh concerns over the European financial crisis.

The energy group finished down 0.13 percent.

"We are constantly ebbing and flowing. Mostly ebbing with the European crisis in regard to Greece and all other problems," said Michael Smedley, executive vice-president and chief portfolio manager at Morgan Meighen & Associates.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 30.08 points, or 0.24 percent, at 12,436.42, with its three key pillars materials, financials and energy dragging the market lower.

Among the sectors in the upside were information technology shares, which rose 1.2 percent, while telecoms gained 0.7 percent.

The Toronto index mirrored softer global markets as new signs of stress in the Portuguese debt market raised fresh fears the European debt crisis was a risk of contagion. <MKTS/GLOB>   Continued...

<p>People walk by a Bay Street sign inside the financial district in Toronto October 10, 2008. REUTERS/Mark Blinch</p>