CANADA STOCKS-TSX dives as fears about growth, Greece mount

Tue Mar 6, 2012 10:46am EST
 
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* TSX slides 191.45 points to 12,332.50

* Nine of index's 10 major sectors lower

* Bank of Nova Scotia slips after results

By Jennifer Kwan

TORONTO, March 6 (Reuters) - Toronto's main stock index tumbled on Tuesday morning as fears mounted that the global growth outlook is darkening and that Greece may not be able to complete a major debt restructuring deal this week.

The resource-heavy index joined global markets in a sharp fall on the lingering impact of gloomy euro-zone economic data on Monday and of China's move to lower its economic growth forecasts. The index's big materials and energy sectors fell by 2.9 percent and 2.3 percent, respectively, as commodity prices slid on concerns about the demand outlook.

Leading the index lower was Suncor Energy, which sank 3.2 percent to C$33.71. Fellow oil company Canadian Natural Resources tumbled 1.7 percent to C$35.00. On the mining side, Goldcorp dropped 2.7 percent to C$46.36, and Teck Resources fell 3 percent to C$35.12.

"We sure got clobbered on the commodity side yesterday and I think this is just a follow on," said Douglas Davis, vice chairman at Davis-Rea. "The concern is that resource prices will drop and volume of shipments will drop, and altogether it would cause profitability to decline for these companies."   Continued...