CANADA STOCKS-TSX sinks to 3-month low; miners fall on global data

Thu Nov 15, 2012 3:08pm EST
 
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* TSX falls 108.4 points, or 0.91 percent, to 11,821.39
    * Materials sector falls nearly 2 percent
    * Poseidon Concepts down 55 percent on results, forecast

    By John Tilak
    TORONTO, Nov 15 (Reuters) - Canada's main stock index fell
for the fourth straight session and 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 3.32 percent at
C$39.91 and Barrick Gold falling 1.66 percent to
C$33.43. 
    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.
     "The biggest issue for investors is still the 'fiscal
cliff' in the United States and the entrenched political
positions on both sides," said Julie Brough, vice president at
Morgan Meighen and Associates.
    "We're in a period of heightened uncertainty after what was
a quiet period when people lulled themselves into a complacent
state."
    Adding to the selling pressure, data on Thursday showed the
United States reported a spike in new claims for jobless
benefits last week and the euro zone slipped back into recession
in the third quarter, its second recession since 2009.
 
    At midafternoon, the Toronto Stock Exchange's S&P/TSX
composite index was down 108.4 points, or 0.91
percent, at 11,821.39. Earlier in the session, the index fell to
11,761.34, its lowest point since Aug. 7.
    "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. 
    
    POSEIDON PLUNGES
    Energy services company Poseidon Concepts Corp lost
more than half its value and was one of the largest drags on the
Toronto market. Its shares fell 55 percent to C$5.91 after it
posted weak results and cut its outlook. 
    The financial sector declined 0.61 percent as the
macroeconomic concerns hit markets. Bank of Montreal 
fell 1.09 percent to C$57.08. Fairfax Financial Holdings Ltd
 dropped as much as 9.6 percent to a three-year low on
Thursday after the stock was unexpectedly deleted from the MSCI
Canada index. 
    Research in Motion shares rose 3.17 percent to
C$8.78, a day after its chief executive expressed confidence
that a new line of BlackBerry 10 devices would offer long-term
value for unhappy shareholders.