CANADA STOCKS-TSX falls on Spanish bank concerns
* TSX down 25.37 pts, or 0.2 pct, at 11,551.10 * Financial shares lead losses * Spanish bank woes rattle markets * China, Greek hopes help contain losses By Jon Cook TORONTO, May 28 (Reuters) - Canadian stocks fell on Monday, led lower by financial issues, which were hurt by concerns over Spain's troubled banks that offset hopes of more stimulus from China and polls showing Greek support for a pro-bailout party ahead of next month's elections. Spanish 10-year borrowing costs neared the 7 percent danger level and Bankia shares hit record lows after the government, struggling to sort out its finances, proposed putting sovereign debt into the struggling lender. "Greece is the sideshow, Spain is the real story," said Barry Schwartz, vice president and portfolio manager at Baskin Financial Services. "Spain will be the next one to get the bailout and they need the help, because their 6.5 percent bond yields is not a good situation." After opening higher, Canada's main stock index fell, with seven of its 10 main sectors in the red. Financial shares, down nearly 0.3 percent, led the slide. Bank of Nova Scotia, which reports its second-quarter earnings this week, fell 0.6 percent to C$50.63, Toronto-Dominion Bank was off 0.4 percent to C$77.94, and Royal Bank of Canada stumbled 0.2 percent to C$50.24. The heavyweight materials group fell 0.5 percent as gold and base metals gave up early gains. Goldcorp Inc slid 1.8 percent to C$38.14, Barrick Gold fell 1.3 percent to C$40.70 and First Quantum Minerals dropped 1.8 percent to C$18.33. At 11:33 (1533 GMT) the Toronto Stock Exchange's S&P/TSX composite index was down 25.37 points, or 0.2 percent, at 11,551.10 after hitting a near two-week high earlier at 11,634.83. Commodity markets were initially boosted by some weekend Greek polls which showed the conservative New Democracy party, a supporter of the bailout plan, with a slight lead over the anti-bailout leftist SYRIZA party, although analysts said the outcome of the June 17 election was still too close to call. Adding to the positive sentiment were hopes China may take steps to boost its flagging economy. Oil and gas firms were up 0.3 percent, as U.S. crude oil futures rose more than $1 to an intra-day high of $91.99. The most influential gainers included Nexen Inc, up 1.3 percent to C$16.85, Imperial Oil, which climbed 0.7 percent to C$41.94, and Suncor Energy, up 0.4 percent at C$29.
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