CANADA STOCKS-TSX notches 7th straight weekly loss

Fri Apr 13, 2012 5:16pm EDT
 
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* TSX ends down 174.26 points at 12,040.39
    * Index ends week 0.5 percent lower
    * Seventh straight weekly loss for TSX
    * All 10 sectors weaker

    By Claire Sibonney	
    TORONTO, April 13 (Reuters) - Canada's main stock index
tumbled on Friday, snapping a two-day rally and ending its
seventh consecutive week lower as a flare-up in global growth
concerns hit fragile investor confidence.	
    Data showed that China's economy expanded 8.1 percent in the
first quarter, a rate that was slower than expected and the
country's weakest pace in nearly three years.	
    In addition, the cost of insuring Spanish debt against
default hit 500 basis points for the first time on fears about
the high exposure of the country's banking sector to sovereign
debt.   	
    All 10 sectors were down, but financials made up four of the
top five heaviest decliners. Among the most influential
laggards, Bank of Nova Scotia was down 2.2 percent to
C$54.10, Toronto-Dominion Bank was off 1.9 percent to
C$81.95, Royal Bank of Canada lost 1.7 percent to
C$55.88 and Manulife Financial dropped 3.4 percent to
C$12.94.	
    "Today was a down day from the get-go. Part of the problem
is that we have had a bit of a shift in investor attention,"
said Pat McHugh, Canadian equity strategist at Manulife Asset
Management. 	
    "Before this week, we had kind of left Europe and China and
had gone to the U.S. and we had focused on the U.S. for quite
some time and of course a lot of money had been made ... people
are just taking profits."  	
    The Toronto Stock Exchange's S&P/TSX composite index
 ended down 174.26 points, or 1.43 percent, at
12,040.39. All 10 sectors were negative. The index ended the
week down 0.5 percent, its seventh straight weekly loss.	
    The TSX is down 0.7 percent so far this year as
growth-sensitive resource shares have lagged heavily.	
   	
    Adding to unease about the global economy, two U.S. reports
on Friday sent mixed signals to the U.S. Federal Reserve about
how much room there might be to bolster economic growth.
 	
    Robert Kavcic, economist at BMO Capital Markets, noted that
valuations on the TSX and S&P 500 are also more normal now than
they were six months ago, when they looked quite cheap. "That
tailwind is pretty well gone for now," he said.  	
    In individual company news, SNC-Lavalin lost 4.2
percent to C$38.40 after the engineering giant's headquarters
were searched by police following an internal company
investigation that found a mysterious $56 million in improperly
authorized payments. 	
    Shaw Communications sank 5.2 percent to C$19.69
after reporting its quarterly earnings rose more than 3 percent
on strength at its cable and satellite businesses, but the
company said it expected a marginal decline in profit at the
cable unit this year. 	
    Canada's Chorus Aviation fell 4.6 percent to
C$3.54 after losing a contract to run Thomas Cook Group 
vacation flights from Canada three years before the contract
ends because Thomas Cook is seeking more operating flexibility.