CANADA STOCKS-TSX falls with commodities on euro zone tension

Wed Sep 26, 2012 11:07am EDT
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* TSX drops 76.60 points, or 0.62 percent, to 12,180.58
    * Mining, energy shares fall as gold and oil prices falter
    * RIM makes more gains on upbeat subscriber numbers

    By Alastair Sharp
    TORONTO, Sept 26 (Reuters) - The main Canadian equity index
fell sharply on Wednesday morning as gold-mining and energy
shares followed gold and oil prices lower as investors fretted
about renewed tension in the euro zone.
    Barrick Gold Corp, the world's biggest producer of
the precious metal, fell 1.3 percent to C$39.74 as bullion
slipped to an almost two-week low. 
    Suncor Energy, Canada's No. 1 integrated oil
producer and refiner, was down 1.2 percent at C$31.86. Crude
prices fell more than 1 percent, wiping out gains made earlier
this month that were spurred by stimulus measures taken by the
U.S. Federal Reserve and the European Central Bank. 
    Market anxiety heightened after Greek police fired teargas
at youths hurling petrol bombs and stones as tens of thousands
took to the streets in Athens in Greece's biggest anti-austerity
demonstration in months. 
    The demonstration followed violent protests in Spain and
reignited worries that the euro zone debt crisis is deepening
despite efforts by central banks to reflate economies.
    "Markets have a very tough time dealing with uncertainty,
and in a word, that is what's dominated this marketplace, the
uncertainty of the outlook ahead," said Peter Chandler, a senior
vice-president at Canaccord Wealth Management based in Waterloo,
    At 10:40 a.m. (1440 GMT) the Toronto Stock Exchange's
S&P/TSX composite index had lost 76.60 points, or 0.62
percent, to 12,180.58. If the losses hold, the TSX will notch
its fifth straight declining session.
    Canaccord's Chandler suggested the fall was a natural
reaction to a lack of catalysts.
    "The market is stuck in a trading range, it's at the high
end of its range now and in the absence of more meaningful
economic developments or news the market stays in a trading
range," he said.
    Canadian shares are expected to make further gains this year
and into the middle of 2013, a Reuters poll of market
strategists released on Wednesday showed, as the central bank
stimulus is expected to lift lagging resource stocks.
    Research In Motion Ltd rose 1.1 percent to C$6.57,
adding to gains made on Tuesday, when the struggling BlackBerry
maker surprised investors with upbeat subscriber numbers.
    Shares in private equity company Onex Corp slipped
0.8 percent to C$37.78 after the it said it would buy German
plastics machinery maker KraussMaffei AG for 568 million euros
($736 million). 
    Talisman Energy Inc shares dipped 0.4 percent to
C$13.21 even though a company executive said Talisman will have
new crude oil and condensate production coming online in Vietnam
and Papua New Guinea in the next two years to meet growing
demand in Asia. 
    Base metal miner Lundin Mining Corp fell 2.4
percent to C$4.85 after it said it will not exercise its option
to buy a stake in the Touro copper mine in northern Spain as it
sees insufficient returns from the project.