CANADA STOCKS-TSX drops 1 percent as global growth worries drag

Wed Apr 17, 2013 11:31am EDT
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* TSX falls 145.47 points, or 1.20 percent, to 11,974.05
    * Nine of 10 main index sectors decline
    * First Quantum sheds 8.7 percent, erasing Tuesday's gains

    By John Tilak
    TORONTO, April 17 (Reuters) - Canada's main stock index fell
more than 1 percent on Wednesday with almost every major sector
declining as worries mounted about global economic growth and
weak U.S. earnings reports.
    Oil prices also tumbled on demand concerns, and weighed on
oil and gas shares. 
    Investors were disappointed by U.S. quarterly reports from
companies such as Bank of America Corp and Yahoo Inc
 and by a cut in global economic growth forecasts by the
International Monetary Fund. 
    The Bank of Canada chopped its economic growth forecast for
the country and left interest rates unchanged, but still
insisted its next rate move would likely be a hike.
    Toronto stocks are down about 4 percent this year as weak
commodity prices have weighed on resource shares, which make up
about 40 percent of the index.
    "We're certainly in some form of correction," said Michael
Sprung, president of Sprung Investment Management. "The market
was ahead of itself, and we're taking a definite setback."
    "The overall recovery is quite fragile. We're likely to see
very low GDP growth for the foreseeable future." 
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 145.47 points, or 1.20 percent, at 11,974.05
in midmorning trade. Nine of the 10 main sectors on the index
were in the red.
    Energy shares declined the most, slipping 1.8 percent. 
    The materials sector gave back 1.1 percent, mainly due to a
5.3 percent decline in mining stocks. 
    Miner First Quantum Minerals Ltd shed 8.7 percent to
C$15.55, erasing almost all the gains it made the previous day.
It played the biggest role of any single stock in leading the
index lower. 
     Financials, the index's most heavily weighted sector, lost
0.7 percent.