CANADA STOCKS-TSX slides with energy shares, Spain worries

Fri Jul 20, 2012 10:53am EDT
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* TSX down 52.75 pts, or 0.4 pct, at 11,612.95
    * Energy shares fall with oil prices
    * Worries about Spain rattle markets

    By Jon Cook
    TORONTO, July 20 (Reuters) - Canada's main stock index fell
on Friday as energy shares retreated with oil prices and rising
Spanish bond yields sparked fresh concerns over Europe's debt
    Nearly all of Canada's 10 main sectors moved lower. The
powerhouse oil and gas subindex led the way, falling 1.1 percent
as U.S. August crude eased after hitting a two-month high
on Thursday. 
    "Our market has been going up and down with the price of
oil," said Brendan Caldwell, president and chief executive of
Caldwell Investment Management Ltd.
    Energy declines were led by Canadian Natural Resources
, down 1.1 percent to C$28.66, Cenovus Energy,
which dropped 1.8 percent to C$32.35, and Suncor Energy 
slid 1 percent C$30.30.
    At 10:30 a.m. EDT (1430 GMT), the Toronto Stock Exchange's
S&P/TSX composite index was down 52.75 points, or 0.4
percent, at 11,612.95.
    The index was on track for its first loss after rising the
past five sessions.
    "The medium-term trend is for lower commodity prices and it
will be until the worldwide economic situation is sorted out,"
added Caldwell.
    Global stocks were rattled on Friday after Spain's heavily
indebted Valencia region called for aid, increasing investor
doubts that the Spanish government can avoid a full-blown
    Spanish 10-year bond yields climbed back above the 7 percent
threshold considered unsustainable, despite Euro zone finance
ministers signing off on a 100 billion euros ($122.61 billion)
bailout deal to recapitalize Spain's banks.
    Canada's financial services sector slid 0.5 percent on the
shaky euro zone outlook. Losses were led by the major banks,
with Royal Bank of Canada falling 0.7 percent to
C$52.28, Bank of Nova Scotia down 0.9 percent at
C$52.15, and Toronto-Dominion Bank slipping 0.6 percent
to C$80.04.
    In earnings news, shares of West Fraser Timber Co Ltd
 jumped 2.4 percent to C$52.15 a day after the lumber
company reported a second-quarter profit, on high lumber prices
and strong demand from Asia.