TSX falls as China concerns hit resource stocks
TORONTO (Reuters) - Toronto main stock index .GSPTSE ended lower on Tuesday as investors nervously awaited progress on a Greek debt deal, while concerns about Chinese resource demand hurt energy and mining shares.
The decline was the second straight for the index after it hit a five-month high on Friday.
"We're having a bit of a pause here because of what's happening in Europe," said John Kinsey, a portfolio manager at Caldwell Securities in Toronto.
"I think that yesterday and today we've sort of been quietly been waiting for some kind of resolution."
The market fell hard early in the day and then clawed back some of the losses on optimism that Greece was close to terms on a 130-billion bailout. But a Greek official said a key meeting of political parties to approve the terms would be delayed until Wednesday, leaving investors on tenterhooks.
Six of the TSX's 10 subgroups finished lower, with the bulk of the losses in the energy and materials groups after China warned its industrial output growth could weaken this quarter because of the sluggish global economy and Europe's debt crisis.
Also hurting the energy sector was a unexpected maintenance shutdown at Canadian Natural Resources Ltd's (CNQ.TO: Quote) Horizon oil sands plant in northern Alberta, expected to last two to three weeks.
The company's shares dropped 4.4 percent to C$38.52, while EnCana Corp (ECA.TO: Quote) retreated 1.8 percent to C$19.83.
All told, the energy sector fell 1.23 percent. Continued...