CANADA STOCKS-TSX falls on Spanish bank concerns

Mon May 28, 2012 11:51am EDT
 
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* 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.