CANADA STOCKS-TSX hits 3-month low as miners fall on global data

Thu Nov 15, 2012 11:57am EST
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* TSX falls 81.56 points, or 0.68 percent, to 11,848.23
    * Materials sector down nearly 2 percent
    * Poseidon Concepts down 54 percent on results, forecast

    By John Tilak
    TORONTO, Nov 15 (Reuters) - Canada's main stock index
tumbled to a three-month low on Thursday, dragged down by the
material and financial sectors, as soft U.S. and European
economic data dampened investor sentiment.
    The materials sector, home to mining companies, dropped
nearly 2 percent, with Goldcorp Inc down 1.25 percent at
C$40.77 and Barrick Gold falling 1.44 percent to
    Gold prices fell more than 1 percent to a one-week low.
    Financial markets have also been hit by ongoing fears about
budget negotiations in Washington, the failure of which could
trigger tax hikes and spending cuts that could push the U.S.
economy, the world's biggest, into recession.  
    "We're bouncing up and down like a yo-yo on a very long
string. This is a very long, emotion-fueled week for the
market," said Barry Schwartz, portfolio manager at Baskin
Financial Services. "We're looking for some clarity from our
neighbors in the south." 
    Data on Thursday showed the euro zone slipped back into
recession in the third quarter, its second recession since 2009,
and the United States reported a spike in new claims for jobless
benefits last week. 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 81.56 points, or 0.68 percent, at 11,848.23
by late morning. Earlier in the session, the index fell to
11,761.34, its lowest point since Aug. 7.
    Energy services company Poseidon Concepts Corp 
lost more than half its value and was the single largest drag on
the Toronto market. Its shares fell nearly 55 percent to C$6.01,
after it posted weak results and cut its outlook.
    The financial subgroup declined 0.33 percent as the
macroeconomic concerns hit markets. Bank of Montreal 
fell 0.92 percent at C$57.18 and Fairfax Financial 
dropped 3.5 percent to C$357.61.
    However, Manulife Financial Corp shares rose 0.17
percent to C$11.98. Canada's largest life insurer said it had
promoted Paul Rooney, currently the head of the Canadian
division, to chief operating officer. 
    Research in Motion shares rose 2.47 percent to
C$8.72, a day after its chief executive expressed confidence
that a new line of BlackBerry 10 devices would offer long-term
value for unhappy shareholders.