CANADA STOCKS-TSX falls on euro zone worries

Mon May 7, 2012 12:29pm EDT
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* TSX down 50.97 pts, or 0.4 pct, to 11,820.26
    * Materials, energy issues fall more than 1 pct
    * Financials pare some losses
    * Greek, French election results hurt sentiment

    By Jon Cook	
    TORONTO, May 7 (Reuters) - Toronto's main stock index was on
track for its fourth straight loss on Monday as oil and other
resource-based commodities tumbled after Greek and French
election results rattled investors.	
    Euro zone debt fears escalated after incumbent governments
in France and Greece lost re-election bids on Sunday. Market
watchers were concerned the new governments may not have the
stomach for painful austerity measures seen as key to tackle the
region's debt crisis. 	
    "The uncertainty there will probably weigh on sentiment for
some time still," said Robert Kavcic, an economist at BMO
Capital Markets.	
    Kavcic added the Greek situation was a bit more pressing, as
it was unclear "whether or not they're going to be able to meet
the demands necessary to maintain their bailout funding."	
    The heavily weighted materials and energy groups both fell
more than 1 percent, leading Canada's broader index lower as
base metals and gold prices slid and Brent oil hit a 4-month low
below $113 a barrel.   	
    Among material stocks, the most influential decliners
included top fertilizer producer Potash Corp, down 1.1
percent to C$41.84, copper miner Teck Resources Ltd,
off 2.4 percent at C$33.94 and major gold miner Goldcorp Inc
, taking off 1.6 percent to C$35.83.	
    Inmet Mining Corp fell 7.7 percent to C$46.37 after
the Toronto-based miner's long-awaited engineering study on its
Cobre Panama copper-molybdenum project in Central America pegged
development costs at $6.2 billion. 	
    Around noon (1600 GMT), the Toronto Stock Exchange's S&P/TSX
composite index was down 50.97 points, or 0.4 percent,
to 11,820.26. It touched a fresh 2012 low at 11,785.74.	
    Energy losses were led by Canadian Natural Resources Ltd
, down 1.6 percent to C$31.20, Suncor Energy,
off 1 percent to C$29.89, and Cenovus Energy Inc, which
slipped 1.5 percent to C$31.69.	
    TransGlobe Energy Corp fell more than 8 percent to
C$12.12 as crude prices slid despite the oil and gas company
reporting that quarterly profit rose nearly four times.
    Positive Canadian housing data helped pare some losses.
Statistics Canada said the value of building permits rose by 4.7
percent in March, beating the average forecast of a 2.8 percent
    Despite the uncertainty in Europe, financial shares edged up
0.3 percent as Canada's major banks performed well. Bank of Nova
Scotia led the sector's slight gains, up 1.3 percent to
    "The Canadian banks are always perceived as a relative safe
haven and that perception gets magnified when we have problems
on the other side of the Atlantic," said Kavcic.	
    In other news, Thompson Creek Metals slid 14
percent to C$4.74 after the molybdenum miner said it plans to
raise up to $430 million to help develop the Mt. Milligan
copper-gold mine in British Columbia. Toronto-listed shares of
the Denver-based company have fallen some 33 percent this year.